Product Handbook

(For Internal Circulation Only)

Marketing Department
Corporate Office, Bangalore

DISCLAIMER

This Product Handbook covering gist of Banks and Third Party products has
been designed & created by Marketing Department (for internal circulation
only) with the contributions from respective functional departments at apex
level. The contents in this handbook are updated as on 30th April, 2014.
Readers are advised to refer to the circulars quoted at the end of each
topic or the concerned department for further details/ clarifications.

Executive Directors Message

Dear Colleagues,
The Product Knowledge plays a vital role in Quality Business. The researches
have shown that Sales/ Branch Staff having complete information about their
own products have better chance of tapping business.
Taking into account the growing need for empowering all categories of
employees, particularly the young brigade who have joined the Bank in
recent past, the Marketing Department has taken initiative to provide gist of
Banks own and Third Party Products in quite handy format
It is expected that this Product Handbook will facilitate all the employees to
act as marketing person directly /indirectly by providing need based product
solutions to our existing / prospective customers.
Please take best advantage of this Product Handbook & explore the avenues
for taking the business to greater heights.
With Best Wishes!

M Anjaneya Prasad

20.08.2014

Executive Directors Message

Dear Colleagues,

Banking is passing through a critical period in terms of slow growth &

competition among peer banks. We have to accelerate the growth in business
particularly in retail area.
The right mix of 4 Ps i.e. Product, Price, Place and Promotion is of great
significance in Marketing. We have well-knit bouquet of products with
competitive pricing, available for distribution through strong network of over
3,250 branches spread over all the States and Union Territories of the country,
supported by over 28,000 employees. I have felt that what is missing is the
product knowledge at all levels.
Leveraging right mix of 4 Ps for business growth, particularly in area of
Retail, Priority Sector, Alternate Delivery Channels and Third Party Products;
Marketing Department has come out with this Product Handbook. It will fill
the gap existing in form of correct knowledge of products and terms &
conditions.
I urge each one of you to enrich yourself with product knowledge to provide
need-based product offering to the customers for Quality Sales.
With Best Wishes!

T K Srivastava

20.08.2014

General Manager- Marketing Message

Dear Colleagues,
Employee empowerment enables employees to make decisions about their
jobs and take responsibility for their results. It helps employees serve
customers at the level of the organization, where the customer interface
exists.
It has been the endeavour of the Marketing Department to extend support to
the field functionaries to attain Sales & Service Excellence.
In order to empower all employees with the basic knowledge of all products
and services currently available in the Bank, we have bought out this Product
Handbook with the contributions from respective functional departments at
apex level, which is expected to serve as a Ready Reckoner. I am sure this
handbook will facilitate all Marketing / Branch Staff in responding to
Customers Queries effectively & promptly for Business Development.
Let us accelerate the efforts for marketing of all products and services with
more vigour & vitality to attain Business Excellence through Knowledge
Based Approach.
With Best Wishes!

SK Dhingra

20.08.2014

Knowledge has to be improved, challenged, and increased constantly, or it vanishes.

-Peter Drucker
The best advice I ever got was that knowledge is power and to keep reading.
-David Bailey

SYNDICATE BANK
PRODUCTS AT A GLANCE

Index
S.No.
I
A
B

Products
ASSET PRODUCTS
RETAIL LOANS
MSME

Page

II
A
B
C

LIABILITIY PRODUCTS
SAVINGS ACCOUNT
CURRENT ACCOUNT
DEPOSIT

42
43-46
47-50

III
A
B
C
D
E
F

PARA BANKING PRODUCTS

LIFE INSURANCE
GENERAL INSURANCE
GROUP INSURANCE
MUTUAL FUNDS
CMS
NATIONAL PENSION SCHEME

51
52-53
54
55
56-58
59

IV
A
B
C
D
E
G
H

ALTERNATE BANKING CHANNELS

PRODUCTS
PAYMENT CARDS & POS
INTERNET BANKING
SMS BANKING & MISSED CALL BANKING
MOBILE BANKING
NEFT / RTGS
UTILITY BILL PAYMENT
FUNDS TRANSFER / REMITTANCE FACILITY

60-65
66
67-68
69
70
70
70

PRIORITY SECTOR ADVANCES

71-86

7-30
31-41

ASSET PRODUCTS
1. SYND SARAL: Clean Demand loans/ Mortgage or Liquid security based OSL to Salaried/non-salaried
/NRI /Women/Agriculturists and for consumer durables. SyndSuvidha, SyndKisan, SyndMahila and
SyndPravasi merged with SyndSaral and specific features of products retained post-merger.
To meet any genuine personal credit needs
DL: Max. Tenure 60 months DL/ OSL : Max. Tenure 60 months
for salaried & Non-salaried
SOD - Renewable every 2 years
ODC Max ` 2 Lacs
Target group
Salaried Class:
Non-Salaried Class:
All types of borrowers:
Permanent employees of Professionals/Doctors/
Offering
State/ Central Govt / Public Engineers/Lawyer/CAs & NSC/LIC/IVP/KVP/
Sector / Reputed Private
other non-salaried class etc. RBI Bonds OR Mortgage
Sector Companies/Teachers/
of property as security
Professors /Pensioner
Maximum ` 5 lacs
NSC/IVP/KVP: 80% of
Amount
of Not exceeding 12 Months
Gross
Salary

no
max
i.
50%
of
Gross
Annual
purchase price if completed
finance
ceiling if salary credited Income If latest ITAO is 24 months or 65% of
through our bank
submitted or 100% of purchase price if completed
Not exceeding 12 Months
average Income if last 3 12 months but less than 24
Gross Salary max Rs 3 lacs year ITAOs are submitted
months.
if salary not credited through ii. 60% of the value of the RBI relief bond: 80% of
our bank
property if Mortgage is purchase value
offered as security
LIP : 80% of Surrender
Value
Requirements i. Salary/ Pension credited at i. Valid mortgage is to be i. The genuineness of the
the branch level
created in case the applicant securities offered (ie.,
ii. Irrevocable letter from the is unable to produce proof NSC/LIC/IVP/KVP/RBI
Either of
employer to deduct and of income
bonds) is to be verified
remit the installments
ii. Manager can assess the ii. Security should have
iii. Post dated cheques can income in case no proof of completed the minimum
be accepted
income is produced
lock in period.
iv. Irrevocable letter from iii. Post dated cheques can
the surety in case his salary be accepted
is credited with us
3rd party acceptable to the Sanctioning Authority
Surety
BR+ 4.75% pa Concession BR+ 4.75%pa
BR+1.75% pa
Interest
of 0.25%pa is available for
women beneficiaries if the
loan amount is upto `.1.50
lakhs.
Cut back
ONLY FOR SALARY / NON- SALARIED CLASS DLs:
(i) Cut back not to exceed 50 % of gross salary / 60% in case voluntary contributions like
LIC etc / 70% in case Spouse has separate income from regular employment
(ii) Pensioners - 50%
Service
0.50% of the Loan amount with minimum of ` 500/-.
Charges
For OSL: ASD 3, 6& 14 , SP
Documentatio Application - AF 673
For DL - ASD 3, OF 1904, SP1208 & ASD 6;
1208. For SOD: DF157, ASD 3,
n
For ODC DF 157,ASD 1,ASD 2,ASD 6
ASD 6
BC Cir 086/2002, 23/2003, 132/2003, 158/2010,192/2010,105/2010,43/2010, 36/2012
Reference
AND 38/2014
Circulars
Purpose
Facility

2. SYNDSARAL-FOR PURCHASE OF CONSUMER DURABLES-SPECIAL FEATURES

To purchase consumer durable
OSL
Not more than 60 EMIs
Salaried & Non- Salaried Class
Salary is to be credited or undertaking letter from employer is to be obtained
Quotations for the items proposed to be purchased is to be submitted
Declaration for having purchased the items to be obtained
i.
Salaried class: 80% of invoice or 10 Months Gross Salary which ever is
Quantum loan
calculation
less Maximum ` 2 lac
ii.
For a Pensioner Maximum ` 1 lac
iii.
Non- Salaried: 80% of the invoice or 50% of the Gross Annual Income as
per ITAO or Return filed.
Rate of interest BR + 4.75%pa (As per cir no 158/2010 )
Third party acceptable to the Bank
Surety
Purpose
Facility
Tenure
Target group
Requirements

Cutback not to exceed 50 % of gross salary.

Cutback may go up to 60% in case voluntary contributions like LIC etc
Cutback can go up to 70% in case Spouse has separate income from regular
employment
iv.
Cutback not to exceed 50% for pensioners
Documentation For OSL - ASD 3, 6& 14 , SP 1208
For SOD - DF157, ASD 3, 6& 14 and 140, AF 471
BC Cir. 086/2002, 23/2003,132/2003 AND 43/2014
Reference
Cutback

i.
ii.
iii.

3. SYNDSARAL PERSONAL LOANS TO WOMEN SPECIAL FEATURES

Purpose
Facility
Target group

To meet any genuine personal credit needs.

DL
Women employees and self employed in the age group of 20 to 50
Salaried Class: Permanent employees of State/ Central Govt / Public Sector /
Reputed Private Sector Cos/ Teachers /Professors
NonSalaried Class: Professionals/Self Employed/ C A s & other non-salaried
class etc. including House-wife.

Salary/ Pension to be credited at the branch level.

Irrevocable letter from the employer to deduct and remit the installments.
Post dated cheques can be accepted.
Irrevocable letter from the surety in case his salary is credited with us.
Quantum of If salary is credited at the branch Not exceeding 12 Months Gross Salary
If salary is not credited at branch- Not exceeding 10 Months Gross Salary
finance
If maintaining a RD a/c 10 months RD contribution
If having a SB a/c 6 months average monthly balance maintained at the SB a/c
If professional & Self Employed- 50% of the gross annual income
Minimum
Minimum loan ` 10,000//Maximum
Maximum loan ` 1,50,000/Terms and conditions of SyndSaral Scheme for General public are applicable if the
amount of loan is above ` 1.50 lakhs.
Requirement
s

Surety

Earning family member or a 3rd party acceptable to the Sanctioning Authority

Interest

BR+ 4.75% minus 0.25% as per cir no 158/2010

Cut back

i.
Not to exceed 60% in case salary is not credited with us
ii.
70% in case salary is credited with us
iii.
75% if Spouse has separate income from regular employment
As per Circular BC 134/2012 0.5 % of loan amount Min ` 500

Service
charges
Documentati
on
Reference

Application in AF 673
For DL - ASD 3, OF 1904 ( R), SP1208 & ASD6
BC Cir 207/2004, 242/2008, 158/2010, 43/2010 AND 38/2014

4. SYNDSARAL PERSONAL LOANS TO AGRICULTURISTS-SPECIAL FEATURES

Purpose
Facility
Eligibility

Quantum

Repayment
ROI
Guarantee
Other terms

To meet any genuine credit requirements/purchase consumer durables like TV,

Fridge, Washing Machine, Video/ Audio Equipment, etc.
DL(for clean loans)/OSL (for purchase of consumer durables/vehicles)
Agriculturists. Clean loans may be sanctioned only to existing customers who have
availed some facility with the bank and have mortgaged the property. For new
clients, the facility is to be extended only on secured basis.
Demand Loan: 50% of average gross annual income or ` 1.00 lakh, whichever is
less, where proof of income from Revenue Authorities is submitted. Where proof
of income from Revenue Authorities is not available, manager shall make a fair
and realistic assessment of the partys income after getting necessary details and
satisfy himself about the income of the borrower, his repayment capacity etc. In
such event, loan is restricted to 50% of gross annual income or ` 0.25 lakh,
whichever is less.
OSL: 80% of the consumer durable/vehicle to be purchased or 50% of annual
income or ` 0.50 lakh, whichever is less.
Not exceeding 3 years. The repayment may be fixed to coincide with the
periodicity of his income, viz., monthly/quarterly/half-yearly/yearly
As per cir no 158/2010 (compounded monthly)
Good third party guarantee acceptable to the Bank
Where there is an existing mortgage or charge on lands, the proposed loan may
also be covered by the same.
of Interest shall be charged to the loan account monthly. However, the same can be
collected along with installment, i.e., monthly/quarterly/ half yearly/yearly.
Not applicable
As per Circular BC 134/2012 0.5 % of loan amount Min ` 500

Charging
interest
Cutback
Service
charges
Documentation Application form: AF 673
DL:
a) ASD 1, ASD 2, SP 1208 & AF 412, for loans to be closed within 1 year
b) ASD-3, OF-1904I, SP-1208 & ASD-6 for loans to be closed after 1 year
OSL:
a) ASD 22, ASD 7, ASD 8
b) Other usual documents to be obtained for secured loans/mortgage loans

5. SYNDSARAL- PERSONAL LOANS TO NRIS SPECIAL FEATURES

NRIs having NRE /FCNR/NRO accounts for a period of at least 1 year and are
sending remittances regularly
To purchase vehicles/ household consumer durables/others
To meet any genuine personal credit requirements
DL
Salaried: 12 months Gross Salary
Non-Salaried : 50% of Gross Annual Income
WITH A CAP OF ` 3.00 lacs
35 EMIs
Shall be debited to operative NRE/FCNR/NRO accounts of the party or by way
of inward remittances
DL BR+4.75%pa

Target group
Purpose
Nature of facility

Quantum
Repayment
Interest

3rd party acceptable to the bank; spouse having independent income can also
join as surety
Proof of income such as, IT Assessment Order, salary Certificate etc. shall
Other terms and i.
be obtained
conditions
ii.
Loan documents shall be executed by NRIs themselves.
iii.
Power of Attorney holder shall not be permitted to execute the loan
documents.
iv.
Undertaking letter to maintain sufficient balance in the operative account
of the NRI towards loan instalments with standing instruction letter
authorizing the bank/branch to deduct the loan instalments from this
operative account periodically, to be obtained, for all types of loans.
Application Form: AF 673
Documentation
ASD 3, OF 1904 I, SP 1208, ASD 6
Guarantee

BC Cir 74/2004, 106/07BC, 158/2010 AND 43/2010

Reference

6. SYNDVAHAN
Purchase of New / Second hand4 WHEELER Purchase of New 2 WHEELER
PURPOSE
ELIGIBILITY

Only for those having annual income of

Annual income minimum of
` 2 Lacs Per Annum and above.
` 0.50 lac/ Individuals
Proprietorship, Partnership firms , Trusts, Societies, other legal entities except
HUF, Directors/Employees of the Corporates.
(Agriculturists can also be sanctioned SyndVahan. (HO:BC 134/05)
Employees of our Bank are also eligible under this scheme.
Pigmy Agents are not eligible.
Corporate borrowers who are enjoying credit facilities with us with credit rating
of Synd1 to Synd 04, with a record of satisfactory dealings

10

QUANTUM
OF FINANCE

CUTBACK

SECURITY
SURETY

NEW CAR:
NEW Vehicle
95% of on-Road price of the vehicle (or) 3 6 Months gross salary (or)
times the Gross Annual Income whichever is 95% of on road price whichever
less.
is low; with no max. Ceiling.
85% of On road price for loans of above 25
lakhs for loans to Corporate Borrowers
Second Hand two wheelers are
Second Hand Four Wheeler:
not eligible for financing.
Age of the Second Hand Four Wheeler
Up to 2 years
` 10.00 lacs
Above 2 years up to 3 years
` 8.00 lacs
Above 3 years up to 4 years
` 6.00 lacs
Above 4 years up to 5 years
` 5.00 lacs
OR 70% of the valuation of the vehicle
whichever is less.
(i). Normally not to exceed 50 % of gross salary;
60% in case voluntary savings.
70% in case Spouse has separate income from regular employment.
(ii) Not to exceed 50% for pensioners.
Hypothecation of the Vehicle to be purchased
Third party guarantee is waived ( BC 136/2012 )

11

RATE
OF As per cir (HO: BC 240/2013) wef 16.09.2013
BR +2.00 % for 2 wheelers
INTEREST
BR +0.65 % for 4 Wheelers
REPAYMENT New 4 Wheelers 84 EMIs;
OLD 4 Wheeler
Up to 4 years -60 EMI
Above 4 years up to 5 years- 48 EMI
For Two Wheelers 60 months
PROCESSING
Two Wheelers
AND
Upto ` 25000/` 50/DOCUMENTA
Above ` 25000/` 1.25 per ` 1000- or
TION
upto ` 2.00 lakhs
part thereof-Minimum ` 125/CHARGES
Above ` 2.00 lakhs
` 200/- per lakh
Four Wheelers
Above ` 25000/` 1.25 per ` 1000- or part thereofupto ` 2.00 lakhs
Minimum ` 125/Above ` 2.00 lakhs
` 200/- per lakh
REGISTRATI Four Wheeler may be registered in the name of a close relative of the borrower, in
ON OF THE which case the person in whose name the vehicle is registered shall join the
transaction as co-borrower. A close relative for this purpose shall mean
VEHICLE
spouse/parents/son/ Daughter.
1. Bank Hypothecation charge noted in RC Book.
POST
2. Comprehensive insurance for the full value of the vehicle with Bank clause
SANCTION
3. Taking possession of Duplicate Switch Key may be waived
FOLLOW UP
4. Inspection once in a year in case of regular a/cs ADV 43
DOCUMENTA Application Form AF 673.
SP 1208, ASD 4,OF 1904R, ASD13 & Letter as per Annexure 83 of Manual Of
TION
Instruction
For Salaried Class: Pan Card copy/Address Proof copy/Latest Salary Slip/
CHECKLIST
For Non Salary/Business Class: Pan Card copy/Address Proof copy/3 years ITReturns with statement of income
Proforma Invoice of the vehicle, Valuation report in case of finance to old vehicles.
Ensure strict adherence to KYC norms.
SYNDVAHAN:
DOs
1. In CBS account to be opened under product code : 779
2. Follow the fast path/navigation for opening of loan account as per job card provided by
:CO:DIT
3. Obtain copy of Invoice, stamped receipt, confirmation of delivery of vehicle in Form ASD 13
4. Conduct vehicle Inspection and obtain ADV43 immediately after purchase and subsequently
once in year. Obtain one ignition key of the vehicle for our records.
5. Obtain a copy of registration Certificate issued by the concerned Regional Transport Authority
and confirm noting of Banks hypothecation lien in the same
6. Obtain Blank Form No 29 and Form No30, signed by the borrower(2 sets)
7. Preferably obtain a photo of the vehicle (four wheeler) along with owner/borrower and vehicle
registration number.
DONTs
1. Do not encourage finance for second hand vehicles.
2. Do not dilute KYC norms.
3. Do not accept quotations from who are not company authorized dealer
4. Do not release loan proceeds to customers account for purchase of vehicles. Release
specifically to the authorized dealer (supplier).
12

5. Do not allow vehicle insurance to lapse

6. Do not permit sale of vehicle or cancellation of Banks lien on the RC before closure of loan in
the Bank.
7. Do not allow loan account to slip in to NPA status as the asset can deteriorate fast.
8. Do not go for seizing of vehicle without following the proper procedure.
7. SYNDNIVAS PLUS
Purpose
Eligibility
Quantum
Security
Rate of interest
Surety/Co
obligant
Repayment
Processing Fees
Cutback norms
Others

To meet any personal or business credit need

HL customers with satisfactory repayment record of 2 years or more
Value of property at time of sanction or present value, whichever is lower, less
HL Balance outstanding subject to a maximum of ` 3.00 lakhs .
Extension of mortgage created under HL
BR + 3.25% for sanctions made on or after 19/11/2011as per HO Cir
338/2011/BC
All persons who have joined the HL mortgage transaction
Max. 60 EMI
No Processing fees
As applicable to HL
Loan to be offered on pre approved basis as per format to all eligible customers
without waiting for their request Staff members are also eligible.

Documentation

Standard documentation as applicable to secured facility backed by mortgage.

Ref

HO Cir 84/2006 dated 29/04/2006,277/2006,158/2010,338/2011

8. SYNDSENIOR
Purpose
Nature of Facility
Classification
Eligibility

Quantum
Demand Loan

To meet any bona-fide personal / business credit requirement

1. Demand Loan
2. Overdraft facility
Non Priority clean personal loans.
Pensioners in receipt of regular monthly pension from Central / State
Governments / Public Sector Units / Defence Establishments and other
government or quasi government institutions whose pensions are being routed
through accounts held with our Bank.
Quantum of loan that can be sanctioned based upon age profile of borrower as
follows:
Age range
Basis for arriving at quantum Maximum permissible loan
(Amount in lakhs)
upto 65 years
18 times gross monthly pension
` 3.00
routed through our Bank
65 70 years
18 times gross monthly pension
` 1.50
routed through our Bank

13

Over 70 years
Overdraft facility
Repayment

Rate of Interest
Surety

Security
Cut Back
Processing Fee

Documentation

Other Conditions
Reporting

5 months gross pension being

routed through our Bank

` 0.50

Overdrawal in Pensioners Savings Bank account by way of debit balance upto

maximum of one month last drawn pension.
1. Demand Loan- In EMIs not exceeding 72 months
2. Overdraft - Principal to be repaid within Two months from the date of
availing the facility and interest to be serviced monthly. If the liabilities
remain outstanding beyond 30 days they tend to slip into SMA/NPA category
and thus attract prudential norms.
Base Rate+3.75% pa
a. Surety need not be insisted for loans upto 6 months gross pension or ` 50000
whichever is less
b. In all other cases the surety of a family member or that of a third party shall
be obtained. The surety should have adequate means / income.
c. Overdraft facility- Spouse.-In the absence of spouse, any one of the legal
heirs/suitable third party surety.
Unsecured.
50% of income from verifiable sources annual income.
For loans Upto ` 50,000/- No processing charges
For other loans
Flat processing charges of. ` 200 per loan
For Overdraft facility
No processing charges
1. Demand loan-Application Form: AF 673,
SP 1208, ASD 3, OF 1904R, ASD 6.
2. Overdraft facility-Letter of request from the pensioner, ASD-1 (DPN), ASD2 & Recovery mandate (as per annexure-1) shall be signed / executed by both
the Pensioner & spouse. In the absence of spouse any one of the legal
heir/suitable third party surety.
The overdraft facility is not a revolving one, branches need to take the documents
given above every time the customer approaches the Bank for overdrawal.
ROs shall report position of the scheme in AR 3041 to CO:RBD.
Outstandings under the Overdraft shall be reported in AR 3041 under Synd Senior.

14

9. SYNDNIVAS
ELIGIBILITY CRITERIA
Resident :
Non resident:
Resident Indians who are major but not Non-Resident Indians holding Indian Passport and
more than 55 years of age (may be relaxed to persons of Indian
60 years in deserving cases by the Origin resident outside India who are having repaying
sanctioning authority) and who are in gainful capacity.
employment/profession /business having
sufficient and regular income to repay the
loan with interest.Joint borrowing with
wife/close relatives may be considered where
property is held in joint names.
Pensioners :
Hindu Undivided Families :
Pensioners including individuals retired from HUFs for construction of dwelling units for the benefit of
services of various institutions under VRS HUF and Co - Parceners, may be permitted by taking due
drawing assured monthly pension provided precautions about legality of the mortgage.
that they are not more than 60 years of age.
Staff members of our Bank :
Staff Members of RRBs :
Staff members of the Bank subject Staff members of Regional Rural Banks sponsored by the
fulfillment of the criteria as per extant Bank
guidelines in force from time to time( Circular No.092-2012-BC-RBD-18/21-03-2012
Cir.No.289/2010/BC dated 04.11.2010 &
Cir. No. 143/2011/BC dated 01.06.2011)
PURPOSE
1. For purchasing a plot provided an undertaking is obtained from the borrower that he/she/they shall
complete the construction of house on the said plot with the help of bank finance or otherwise within
a period of 2 years from the date of availment of said finance. (Cir. No.279/-010-BCRBD-29 Dt.
6.10.2010)
2. For acquiring house site and constructing a house thereon.
3. For construction of house on the land-already owned by the party/held on lease provided the lease is
perpetual/unexpired period of lease is 50 years or more.
4. For out-right purchase of ready built house/flat of not more than twenty five years old.
5. For purchase of flat to be constructed by the Society / Builders.
6. For making extension / additions vertical or horizontal to the existing house.
7 For carrying out repairs/renovations to the existing house / flat.
8. Takeover of Housing Loans from other Financial institutions such as Public Sector Banks / Other
Banks / Housing Intermediaries/NBFCs, Cooperative Societies and Army Group Insurance Fund etc.

15

QUANTUM:
Basis for quantum of loan:
1. 80% OR 90% of project cost for new constructions / purchase of ready built house / flats. 70% of
Project Cost for old house aged more than 5 years.
2. 72 months Gross Salary in case of Salaried Class.
3. 6 times of 3 years average income in case of non-salaried class.
4. Total deductions should not exceed 60% of Gross Salary in case of Salaried Class and 50% of Gross
Annual Income in case of non-salaried class.
whichever is less
Clubbing of salary of spouse, father, mother, son, daughter, is permitted for determining the
quantum of loan, if the sanctioning
Authority is satisfied that their income is available for
repayment alongwith the income of the borrower during the tenure of the loan, provided he/she has
not availed any loan for the same purpose from any other Bank. Or any other source of finance and
joins the transaction as co borrower. In case of salaried Class, income from Agriculture or any other
sources, subject to production of authentical proof of income can be clubbed.
Components of project cost
The total project cost includes cost of land, construction cost, building insurance premium, cost of
installing lighting/ heating system based on Solar Energy. Further, cost of furniture/fixtures including air
conditioners, geysers, cots, tables, sofas, etc of standard make especially having ISI mark wherever
applicable may be included in the project cost subject to the ceiling of not exceeding 10% of the project
cost excluding above items (Cost of Stamp duty, registration and other documentation charges should not
be included in the project cost).
CUTBACK :
Salaried- 50% of the Gross Annual Income.
Non Salaried: 50% OF GROSS Annual Income.
MARGIN :
Loans below
` 20.00 lacs 10%
Loans of
` 20.00 lacs and Less than ` 75.00 lacs - 20%
Loans of
` 75.00 lacs and above - 25%
In respect of purchase of plots, Branches / Sanctioning /Authority shall be guided by HO Cir. No.2792010-BC Dt. 26.10.2010 i.e. Margin: 50%
LOAN TO VALUE (LTV) RATIO.
Loans below ` 20.00 lacs - 90%
Loans of
` 20.00 lacs and less than ` 75.00 lacs - 80%
Loans of
` 75.00 lacs and above 75%
In case Moratorium period interest is added to the loan amount, LTV ratio prescribed by RBI shall
be adhered to by taking into account Moratorium period interest also.
No further deviations/relaxations are permitted in margin for loans with LTV ratio of 80%/90%. However
in respect of loans of ` 75.00 lacs and above, LTV ratio can be relaxed upto 80% by
DGMs/GMs heading
ROs and GMs at Corporate Office, selectively depending on the merits of individual cases.
Rate of Interest: Base Rate ie presently 10.25% irrespective of tenor and amount of the loan
(Subject to revision from time to time)
Present Processing and Documentation Charges(subject to revision from time to time)
Loan Amount Processing and Documentation Charges.
Loans upto ` 25.00 lakhs -0.125% of the loan amount with a minimum of ` 500/- and maximum of `
2500/Loans Above ` 25.00 lakhs to ` 75.00 lakhs-0.125% of the loan amount with a maximum of
`
3250/- .
Loans above ` 75.00 lakhs - ` 10000/- (Flat)
16

Prepayment Charges (Subject to modifications)

1. NIL, if the loan is prepaid from own source.
2. Nil in case of loans taken over by other Banks/Financial Institutions.
Surety/Guarantor: Waived (Possibility of obtaining surety /Guarantee of spouse wherever necessity is
felt shall be explored.
Security: Mortgage of Plot / House/Flat to be constructed / purchased.
Release :
1. For loans sanctioned for construction, it shall be released in 4 to 5 convenient installments depending
on the progress in construction & ensuring that borrower has invested his margin as well. Second and
subsequent releases shall be made only after verification of satisfactory full utilization of earlier
released amount.
2. Where loan is sanctioned for outright purchase of house/flat, loan amount along with the margin
money collected from the applicant shall be released to the Vendor at the time of registration of sale
deed.
3. Disbursal of Housing Loans sanctioned to individuals should be linked to the stages of construction
of Housing Project/Houses and upfront disbursal should not be made in cases of incomplete/under
construction/green field Housing Projects.
Repayment :
Not exceeding 30 years or 75 years of age whichever is earlier. (Including repayment holiday if any).
Repayment Holiday :
1. 18 months maximum - in case of construction.
2. No repayment holiday in case of purchase of Ready built House/
Flat or Old House/Flat.
Insurance Property: 1. The House / Flat constructed / acquired shall be insured by the applicant in the
joint names of applicant and the Bank for the total cost of the House / Flat against natural calamity of
earthquake and fire risk with riot and strike clause. Premium shall be borne by the borrower
2. Life of Borrower: At the option of the borrower.
Valuation :
1. If the loan is ` 2.00 lacs and above & below ` 100.00 lacs ---By Banks Approved Valuer.
2 If loan is ` 100.00 lacs and above, --- By two independent Banks Approved valuers. Least of the two
shall be taken into consideration. (Cir. No.328-2010-BC-RMD Dt 7.12.2010).
DOCUMENTATION:AF 612,Stamped Receipt, Undertaking letter to debit monthly instalments,
documents for creation of mortgage ASD7, ASD8, ASD9,ASD10,, undertaking letter from the employer
for deduction of instalments, Undertaking letter from the employee to the employer for deduction of
instalments.
Caution:
1. Where loan is sanctioned for purchase of property within the family members, clearance from
respective ROs shall be obtained before the release of the loan (Cir No. 29/2012/BC/RBD/06
dated 31.01.2012.
2. In case of Housing Loans ` 10.00 lakhs and above, second search report shall be obtained
immediately before the release of the loan (Cir. No. 335/2011/BC/RBD dated 30.11.2011.
Inspection Charges: (Subject to revision from time to time)
Up to
` 50 lakhs
Above
` 50 lakhs
Irregular/NPA loans

` 250/- per year (One visit)

` 500/- per year (One visit)
` 500/- per visit

CHECK LIST FOR HOUSING LOAN APPLICATION

1. Loan Application Form (AF 613, completed in all respects.
2. Individual Asset and liabilities form (ADV 80A) completed in all respect.
3. Account number and Customer ID of applicant/s and Surety/ies
4. Photos of applicant/s and surety/ies
17

5. Phone No. and mobile No. of applicant/s and Surety / ies

List of Enclosures to be submitted along with the application:
For Salaried Class: (for both Applicant/s and Surety /ies)
1. Pan Card copy
2. Address Proof copy (like Telephone bill, Voter ID, DL etc., )
3. Passport copy
4. Employee ID copy
5. 6 months Latest Salary Slip
6. 1 year Statements of A/cs where Salary is being credited.
7. Copies of ITAO and Income Tax Return /Form 16 for the last three years.
8. Previous and present employment details of applicant with proof.
For Non Salary/Business Class: (for both Applicant/s and Surety /ies)
1. Pan Card copy
2. Address Proof copy (like Telephone bill, Voter ID, DL etc., )
3. Passport copy
4. 1 Year Statements of A/cs
5. 3 years IT-Returns with statement of income.
6. Copies of audited Balance Sheet/Profit and Loss account
7. Proof of Business (Like VAT/ GST registration copy etc.,)
For NRIs/PIOs:
1. Copies of Passport/Visa:
2. Work permit/Job contract/appointment order:
3. Special power of attorney as per bank format duly executed in the presence of the officials of the
Embassy and adjudicated in India.
4. 3 months Latest Salary certificate with deductions/ITR for 3 years:
5. F/C account statement for the last 2 years
6. Statement of SB account for the last 2 year.
7. Proof of margin money from NRE/NRO account
8. Declaration that the house/flat shall be used for own use on return from abroad:
9. Declaration regarding proposed period of stay in abroad to be submitted.
PRIVATE PROPERTY: Title deeds (submit list in duplicate mentioning name of document against
each item whether original/photo copies)
No laminated title deed is to be accepted
i)
Prior Title Deeds and Documents: Sale deed/partition deed/gift deed/settlement conveyance
deed/lease deed (if the original is not available, certified copies).
ii)
BBMP Khatha certificate / Record of Rights (RTC) extract from revenue authorities.
iii)
Encumbrance Certificate from the Sub-Registrars Office.
a) for the past 13 years in case property was purchased and
b) for the past 25 years in case the property is inherited
iv)
Conversion order, Betterment Tax paid Receipt, if necessary
v)
Approved Plan & Licence /blue print and commencement certificate.
vi)
Latest land/building tax paid receipt.
vii)
Detailed estimation from the Licenced Engineer.
viii) Original agreement of sale duly stamped. For flats agreement of sale of Undivided share of
land and Construction Agreement and if Undivided Share of land is registered then
Registered sale deed and receipt of margin money paid to the vendor/builder.

18

II. FOR SITES ALLOTTED BY STATUTORY BODIES SUCH AS BDA, MDA, DDA, CITB,
KHB AND SOCIETIES:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)

Allotment letter issued by the Statutory Body/Society

Approved Plan & Licence/blue print and commencement certificate.
Latest land/building tax paid receipt.
Detailed estimation from the Licenced Engineer.
Absolute deed and or conditional sale/auction sale/lease-cum-sale deed by the statutory
body/society.
Layout Plan copy.
E.C. from the date of allotment or for the last 13 years whichever is later.
Possession Certificate issued by the statutory body/societies.
N O C from the statutory body/societies to mortgage the property in our favour.

III. In case of Additions/alterations/repairs and renovation appropriate plan approval and

estimate to be submitted.
IV. For takeover of loans from other Financial Institutions:
i)
Take over of loan is presently permitted only for Salaried class. For business class, RO
permission to be obtained. Income of spouse, who is an income tax payer alone, can be
accepted.
ii)
Loan should have been availed for the purpose of house construction/repairs/ purchase of
ready built house/flat/plot and only 75% of the project cost or outstanding balance
whichever is less will be considered.
iii)
Copy of the Sanction letter and Housing Loan account statement since beginning.
iv)
N O C from the bank/financial institution mentioning therein account is regular, balance
outstanding as on date, closure and other charges, if any and their willingness to handover
the documents if the amount is paid in full along with the list of documents held.
v)
The property should have been constructed as per the approved plan.
vi)
Copies of the property title deeds along with the latest tax paid receipt, Khatha extract and
certificate and up to date Encumbrance Certificate (Minimum 13 years).
vii)
Applicant and surety must have account with our bank branch where they want to avail the
loan.
viii) Non-refundable 25% of the processing charges to be collected up front in terms of HO
Circular No. 17/09/BC dated 21.01.2009.

19

10. SYND VIDYA

(EDUCATIONAL LOAN SCHEME FOR STUDIES WITH IN INDIA AND ABROAD)
ELIGIBILITY: Students (Indian National) who have secured admission to a higher education course in
recognized Institutions in India or Abroad through Entrance Test/Merit Based Selection process after
completion of HSC or equivalent.
It would be in order for braches to consider a meritorious student (who qualified for a seat under merit quota)
eligible for loan under this scheme even if the student chooses to pursue a course under Management Quota.
ELIGIBLE COURSES-STUDIES IN INDIA
i) Approved courses leading to graduate/ Post
Graduate degree,Ph D and P G diploma
conducted by recognized colleges/ universities
recognized by UGC/ Govt./ AICTE/ AIBMS/
ICMR ii) Courses like ICWA, CA, CFA etc.
iii)Courses conducted by IIMs, IITs, IISc,
XLRI. NIFT, NID etc.
iv)Regular Degree/Diploma courses like
Aeronautical, pilot training, shipping etc.,
Degree/Diploma in Nursing or any other
discipline approved by Director General of Civil
Aviation/Shipping Indian Nursing Council or
any other Regulatory body as the case may be, if
pursued in India.
v)Approved courses offered in India by reputed
foreign universities.
vi)Other courses leading to diploma/ degree
conducted by colleges/ universities approved by
UGC/Govt./AICTE/AIBMS/ ICMR etc
vii) Courses offered by National Institutes and
other reputed private institutions.
viii) Courses, which are not covered under the
criteria, mentioned above, RLCAC-I may take a
view to consider extending Education loan
under the scheme taking into account the future
prospects by user institution.
ix) Teacher training course/Nursing course/
B.Ed are eligible for education loan, provided
the training institutions are approved either by
the Central Govt. or by the State Govt.
and such courses should lead to Degree or
Diploma course and not to certification course.

ELIGIBLE COURSES-STUDIES ABROAD

i) Graduation: For job oriented professional/ technical
courses offered by reputed universities.
ii) Post graduation: MCA, MBA, MS, etc.
iii) Courses conducted by CIMA-London, CPA in USA etc.
vi) Degree/diploma courses like aeronautical, pilot training,
shipping etc provided these are recognized by competent
regulatory bodies in India/abroad for the purpose of
employment in India/abroad.
Branches may use the following portal for verifying the
affilications /rankings of University/Colleges.
www.webometrics.info,
www.ugc.ac.in,
www.education.nic.in,
www.aicte.org.in
(c) Undergraduate Medical Courses in China, Russia and
otherForeign Universities:
Medical Council of India (MCI) has stipulated that students
who are desirous of joining an undergraduate course in any
foreign medical
institution have to approach MCI for issue of an eligibility
certificate. The
loan application can be accepted only if the eligibility
certificate is produced which shall be verified and an attested
copy must be retained
with the application. For details regarding the foreign
institutions recognised by MCI, the same may be obtained
from their website
www.mciindia.org In case of delay in producing the
eligibility certificate, necessary proof for having applied for
the same and an undertaking letter from the borrowers for
production of the same at the earliest shall be
obtained by the Branches and kept on record and followed
up.

20

EXPENSES CONSIDERED FOR LOAN:

(i) Fee payable to college/ school/ hostel*
(ii) Examination/ Library/ Laboratory fee.
(iii) Travel expenses/ Passage money for studies
abroad.
(iv) Insurance premium for student borrower, if
applicable.
(v) Caution deposit, Building fund/refundable
deposit supported by Institution bills/
receipts**
(vi) Purchase of books/ equipments/ instruments
/ uniforms***
(vii)
Purchase of computer at reasonable cost,
if required for completion of the course***
(viii) Any other expense required to complete
the course -like study tours, project work,
thesis,etc***
(ix) Insurance Premium.
(x)
*Reasonable lodging and boarding charges will
be considered in case the student chooses / is
required to opt for outside accommodation.
** These expenses could be considered subject
to the condition that the amount does not exceed
10% of the total tuition fees for the entire
course. In case refundable deposit included by
educational Institutions as study expenses, is
financed by the Bank, it shall be credited to the
loan dues after completion of the course, for
which due
undertaking letter from the
borrowers shall be obtained.
*** It is likely that expenditure under Item Nos.
vi, vii & viii above may not be available in the
schedule of fees and charges prescribed by the
college authorities. Therefore, a realistic
assessment may be made of the requirement
under these heads. However, the maximum
expenses included under vi, vii & viii may be
capped at 20% of the total tuition fees payable
for completion of the course.

SECURITY
Upto ` 4.00 lakhs: No security.
Parents to be joint borrower(s).
Above ` 4.00 lakhs and upto. ` 7.50 lakhs ; Parent(s) as
joint borrower(s) , and suitable third party guarantee will be
taken. The Bank in exceptional cases, may waive third party
guarantee if satisfied with the net-worth / means of parent/s,
who would be executing the documents as joint borrower(s)
on receipt of recommendations from the Branch.
Above ` 7.50 lakhs: Parent(s)as joint borrower Tangible
collateral security of suitable value acceptable to bank, along
with the assignment of future income of the student for
payment of installments.
* The loan documents should be executed by both the student
and the parent/ guardian as joint-borrower.
* The security can be in the form of land/building
/Govt.securities/ Public Sector Bonds/ Units of UTI, NSC,
KVP, life policy, gold, and shares/ mutual fund
Units/debentures, bank deposit in the name of student /
parent / guardian / any other third party or any other tangible
security acceptable to the bank with suitable margin.
* Wherever the land/ building is already mortgaged, the
unencumbered portion can be taken as security on second
charge basis provided it covers the required loan amount.
Meritorious students Waiver of security:
Branches which wish to support highly/exceptionally
meritorious/deserving
students without taking tangible collateral security may refer
such cases as deviation to the RLCAC - I for permission on a
very selective basis.

21

QUANTUM OF LOAN
Studies in India -Maximum upto ` 10.00 lakhs.
Studies Abroad -Maximum upto ` 20.00 lakhs.

MARGIN
1. Upto ` 4.00 lacs Nil
2. Above ` 4.00 lacs
a. Studies in India 5%
The ceilings fixed for studies in India and b. Studies Abroad 15%
Abroad correspond to the limits fixed by the
RBI for treatment as priority sector lending. It Scholarship/ assistantship to be included in margin. Margin
would, however, be in order for Branches to may be brought-in on year-to-year basis as and when
consider higher quantum of loan on course to disbursements are made on a pro-rata basis.
course basis (eg: courses in IIMs, ISB etc). It
may also be noted. that even loans in excess of
10 lakhs qualify for interest subsidy under
Central Sector Interest Subsidy Scheme for
loans upto 10 lakhs subject to scheme guidelines
applicable.
INTEREST
REPAYMENT
1. Upto ` 4.00 lacs BR + 2.25%
Repayment Holiday/Moratorium:
2.Above ` 4.00 lacs BR + 2.75%
Course period + 1 year or 6 months after getting job,
1% concession in applicable rate is available whichever is earlier.
to children of Employees of Government If the student is not able to complete the course within the
Department
/
Public
Sector scheduled time, extension of time for completion of course
Undertakings/Corporations and Blue Chip may be permitted for a maximum period of 2 years. If the
Companies, where there is tie up student is not able to complete the course for reasons beyond
arrangement or corporates who give his control, sanctioning authority may at his discretion
consider such extensions as may be deemed necessary to
irrevocable undertaking letter.
0.50% to SC/ST Boy students. 0.50% for Complete the course.
For loans up to ` 7.50 lakhs up to 10 years (exclusive of
Girl students of other than SC/ST category.
0.75% for girl students of SC/ST category. moratorium period)
The overall concession extended to these For loans above ` 7.50 lakhs up to 15 years (exclusive of
categories shall not exceed 1%.
moratorium period)
Note: These concessions are not cumulative and Note: No prepayment penalty will be levied for prepayment
in case the borrower is eligible for multiple of loan any time during the tenure of the loan.
concessions the maximum concession eligible
under any applicable category shall be extended.
* Simple interest to be charged during the study
period and up to commencement of repayment.
Note: Servicing of interest during study period
and the moratorium period till commencement
of repayment is optional for students. Accrued
interest will be added to the principal amount
borrowed while fixing EMI for repayment at the
end of moratorium. Central Sector Interest
Subsidy Scheme (CSIS) is available for loans
upto 10.00 lakhs till the scheme is in
force as per Scheme guidelines.

22

Processing and Documentation charges:

No Processing/Documentation/Upfront charges
to be levied on loans sanctioned under the
Scheme.

DISPOSAL OF APPLICATION
Normally,
sanction/rejection
will
be
communicated within 15 days of receipt of duly
completed
application
with
supporting
documents.
b) Rejection of loan application, if any, shall be
done with the concurrence of the controlling
authority of the branch concerned and conveyed
to the student stating reasons for rejection.
Reasons for rejection shall not violate IBA
model education loan policy read with FAQ.
INSURANCE
As on date, coverage of liability or the
borrower/co-borrower under Insurance is not
compulsory. Bank has availed a Group Life
Insurance Policy with M/s Metlife Insurance
Company Limited under the name SyndVidya
Met Flexi Shield AND Uni-Study Care policy
with M/s United India Insurance Co. Ltd., to
cover the lives of the Education Loan
borrowers. Branches may explain the guidelines
of both the schemes to the students/parents and
may be persuaded for availing Insurance
Coverage.
The amount of such premium can be added to
the project cost/eligible expenses at the time of
sanction.
LOAN TO MORE THAN ONE CHILD IN A
FAMILY:There is no restriction on giving a
second or third collateral free loan to other
siblings when one of the siblings has already
taken a loan.

Insurance:
As on date, coverage of liability or the borrower/co-borrower
under Insurance is not compulsory. Bank has availed a Group
Life Insurance Policy with M/s Metlife Insurance Company
Limited under the name SyndVidya Met Flexi Shield AND
Uni-Study Care policy with M/s United India Insurance Co.
Ltd., to cover the lives of the Education Loan
borrowers. Branches may explain the uidelines of both the
schemes to the students/parents and may be persuaded for
availing Insurance Coverage. The amount of such premium
can be added to the project cost/eligible expenses at the time
of sanction.
MANAGEMENT QUOTA
Where a student has appeared for the common entrance
test/selection process and could not get selection of
course/college of his choice
through such selection process on account of rank and
chooses to pursue a course/college of his choice under
Management Quota, the
eligibility shall be computed based on the fees as approved
by the State Government/ Government approved regulatory
body for payment seats plus other admissible expenses shall
be considered subject to viability of repayment and the same
shall be considered under IBA Model Education Loan
Scheme.
SUBSIDY
Central Sector Interest SubsidyScheme (CSIS) is available to
students whose family income is upto ` 4.50 lakhs for all
loans upto ` 10.00 lakhs(For loans above ` 10.00 lakhs,
subsidy is upto ` 10.00 lakhs only) till the scheme in force..

LOANS TO CHILDREN OF STAFF

Children of our staff can avail SyndVidya loans from
branches where the staff is working at the time of availing
the loan. Whenever the staff are transferred to other
branches, the education loan shall also be transferred to the
branch where they
are transferred. When the staff member retires from the
service during the currency of the loan availed for the
education of their children, the loan can be transferred to the
branch which is nearest to the permanent residence for
further servicing.

Ref. Cir No. 38/2013/BC/RBD/11 dated 14.02.2013

23

Documents to be submitted along with Application

1. Admission Letter from the Institute addressed to Student
2. Marks cards of all previous qualifying examinations
3.Conduct Certificate from last Institution studied
4. Proof of income of Parent(s)/ Guarantor
5. Documents of title and other documents required for Mortgage if needed.
6. PAN CARD of Student and Parent(s)/Guarantor
Documentation: ASD 3, OF 1904, SP 1208, ASD 6, ASD 7 AND 8 OR ASD 10
Repayment Schedule to be written as given in Circular 77/2002/BC dated 6.05.2002
Check list:
1. Mobile numbers, Email , contact telephone numbers, Pan card no, driving license no, UID number
issued by UIDIA of parents and student shall be noted in file and the system without fail by Branch
Officials. In case of studies abroad, bank may obtain the SSN/ Unique Identification Number
(UIN)/Identity Card and note the same in the banks records.
2. While granting loans for studies abroad, full particulars of passport and foreign exchange permit, full
particulars of VISA given to the scholar, along with the passport size photographs of the student. Full
overseas address of the scholar in the foreign country shall be obtained.
3. If student is a minor documents shall be obtained in joint names and parents shall execute on his
behalf; once he/ she attains majority fresh AOD is to obtained.
4. Undertaking letter is to be obtained from the student/ parent agreeing to submit progress report
regularly.
5. Undertaking letter to keep the bank informed of any change in address/change in course and details
of employments from time to time and that the student has not availed educational loan for the same
purpose from any other Banks/FIs.
6. If the student is found to be eligible for subsidy under CSIS Scheme currently in force, the applicants
are to be informed of the subsidy available. Income Certificate of the parent(s) from the Designated
Authority for the State and a stamped agreement executed as per Annexure-C of Cir. 217/2010/BC
dated 23.08.2010 shall be obtained. All the interest debited during the year shall be claimed as per
guidelines issued under the Scheme.
Dos and Donts
1. Payments of Fees are to be made direct by Branch to the Institution only. On no account should the
fees be remitted to the SB A/c of the borrower, except in the case of reimbursement of Fees and other
eligible expenses of the First year.
2. Release of subsequent installments of loan is to be made only after obtaining latest progress reports
issued by the Institution.
3. Stamped receipt is to be obtained from the Institution for receipt of Fees sent by the Branch and kept
along with loan papers.
For detailed and any other clarifications, please refer HO CIRCULARS: 80/2001, 77/2002, 89/2003,
176/2003,87/2004,183/2004,117/05,
4/2007,
102/2010,
144/2011,
283/2011,209/2012
(For education loan to children of staff members).

24

11. SYND SUPERVIDYA

The Scheme aims at helping exceptionally meritorious students who
have secured admission to reputed Institutions as give in Annexure by
extending education loans with special provisions
Technical courses and Post Graduate Masters degree courses and one
Eligible Courses
year Executive Development Programme offered in India by Premier
Technical and Management Institutes .
Please refer below mentioned circulars for list of Colleges/Institutions.
Quantum of Loan
Maximum ` 20.00 lacs
Guarantee/Surety/C Guarantee of parents for loans above ` 4.00 lacs. No collateral
ollateral security
security.
5% Margin
Margin
BR+0.50 %( presently 10.50%) if interest is serviced during
Rate of interest
moratorium period, otherwise 1% additional interest.
0.50% concession to girl students. However the rate of interest will
not be less than the Base Rate.
Branch nearest to the permanent domicile of parent/guardian or branch
Place of sanction
nearer to the institute.
Applicant to submit proof of Identity, Xerox copy of admit card,
KYC Norms
admission letter, photo of the applicant.
The student is eligible to:
Add ons
Open self introduced SB A/c with Debit-cum-ATM Card.
Avail additional loan upto ` 3.00 lacs if selected to go abroad
under Student Exchange Scheme during the Second Year of the
course in Management, upto the maximum loan of ` 20.00 lacs.
Processing
and Nil
Documentation
Charges
Reference Circulars 144/2011,175/2012
Purpose of Scheme

Application: AF 562, ADV 80A of Parent(s)

Documents to be submitted along with Application
1. Admission Letter from the Institute addressed to Student
2. Marks cards of all previous qualifying examinations
3. Conduct Certificate from last Institution studied
4. Proof of income of Parent(s)
5. PAN CARD of Student and Parent(s)/Guarantor.
Documentation: ASD 3, OF 1904, SP 1208, ASD 6
Repayment Schedule to be written as given in Circular 77/2002/BC dated 6.05.2002.
Check list:
1. Mobile numbers, Email , contact telephone numbers, Pan card no, driving license no, UID number
issued by UIDIA of parents and student shall be noted in file and the system without fail by Branch
Official.
2. Undertaking letter is to be obtained from the student/ parent agreeing to submit progress report
regularly.
12. SYND RENT
Any genuine business/ personal credit requirement
Purpose
Bonafide owners of residential or commercial property standing in their own
Target group/
names who have let out the same to Government/Institution or Reputed
Eligibility
Companies and our bank premise owners- Existing and New customers ( our
25

Clearance
Maximum
Eligibility

Take over
Security

Internal rating
Guarantee
Interest

Processing
charges

Repayment
Other
conditions

Documents

Reference

bank premises owners and landlords of residential properties leased to our bank
officers also eligible.)
Clearance from RO required for branch sanction
Remaining period of lease including Quantum of loan - % of the future net
inbuilt renewal period
rentals receivables
Up to 3 years
80 %
Beyond 3 years and up to 5 years
75 %
Beyond 5 years up to 7 years
65 %
Beyond 7 years and up to 9 years
55 %
Deductions applicable to arrive at net rent receivables
i. TDS
ii. Municipal and other applicable Taxes.
iii. Advance Rent already received by the owner.
Selective basis by RO / CO up to delegated powers
UREM of the property rented or alternate property whose value shall not be less
than 125% of the loan sanctioned (OR) 110% of NSC/KVP/IVP or Banks
deposit etc.
For premises occupied by bank, UREM is waived if EMI is
less than the rent payable
Minimum Synd 5
Third party acceptable to bank (May be waived in deserving cases by next higher
authority)
BR+3.75% for CRE , BR+2.75% for borrowers rated Synd 1 & 2 under CRE.
BR+2.50 % for Non CRE, BR+2.00% for borrowers rated Synd 1 & 2 under
Non CRE
Upto ` 25000/- ` 100 for Non Priority loans
Above ` 25000/- to ` 2 Lakhs ` 2.50 per ` 1000/- or part thereof with a
minimum of ` 250/ Above ` 2.00 lakhs to ` 100 lakhs-` 400/- per lakh or part thereof
Above ` 100 lakhs to ` 10 crores- in lieu of the processing charges-`
25000/- plus 1% of the loan amount over and above ` 1 crore upto ` 10
crores
Above ` 10 crores to ` 25 crores-` 9.25 lakhs plus 0.75% of the loan amount
over and above ` 10 Crore upto ` 25 Crores.
Above ` 25 Crore to ` 50 Crores- ` 20.50 lakhs plus 0.50 % of the loan
amount over and above ` 25 Crores upto ` 50 Crores.
Above ` 50 crores- ` 33.00 lakhs plus 0.25% for amounts above ` 50 crores
EMIs not exceeding the unexpired period of lease subject to maximum of 144
months
Lease agreement in original shall be obtained.
An undertaking letter from the lessee / tenant to remit the rents directly to the
bank.
Pre Sanction /Post sanction formalities shall be scrupulously followed.
Consent from the lessee, to inform the Bank in case of vacating the premises
shall be obtained
Opening of Escrow account may be explored
PA or a letter from the tenant /lessee to remit the rent directly to the Bank is to be
obtained and consent letter from lessee/tenant to the effect that the bank shall be
informed 2 months in advance in case of premature termination of lease.
Tripartite agreement as per performa furnished in Circular
ASD 3, OF 1904/R, SP 1208,ASD 6, OF 1904/ R, SP 1208
ASD 7 and ASD 8 along with original title deeds.
BC 03/2011 , 342/2011, 2/2014 and 82/2014
26

13. SYND MORTGAGE

For any genuine business / personal credit needs (Not for speculative and
specifically prohibited purposes)
Take over not permitted
OSL (Term Loan)
Facility
Target group Bonafide owners (other than agriculturists) of residential or commercial property
standing in their own name.
Salaried class and business community (Second mortgage can be created on the
Eligibility
same property for availing some other loans-Margin not to exceed 50%)
criteria
Only as OSL: Maximum of Rs 50 lacs
Facility
Salaried
: 2 to 2.5 times of Annual net salary ; Maximum cutback 60%
Undertaking letter from employer required.
Quantum of
Non salaried: 2 to 2.5 times the average of last 3 years annual income
finance
IT return of last 3 years compulsory
Both Salaried and Non salaried: Clubbing of spouse income backed by IT return.
Agricultural Income shall not be considered
In equated instalments not exceeding 7 years; instalments can be fixed in quarterly,
Repayment
half yearly, annually depending upon the income generation of the party
Fresh loans sanctioned on or after 19.11.2011 : Up to 3 years - BR + 4.25 %
Interest
Beyond 3 years - BR + 4.75 %
Existing OD a/cs
: BR + 6.25 %
Party with adequate net worth acceptable to the Bank (Clubbing of income of
Guarantee
spouse permitted if backed by IT Return)
Other terms Margin - 50 % of the value of the property
Third party mortgage/agricultural property not accepted
&
Take over of loan from others not permitted
Conditions
End use to be verified
Annual inspection of the property and preparation of ADV 84 is a must
Life insurance to be arranged for the borrower
Documenta- ASD3, OF 1904 /R, SP 1208, ASD6, ASD7 and ASD8 along with original title
deeds.
tion
Prepayment 2 % on outstanding balance if loan closed by take over by other Banks/ FI
Charges
Processing
0.5 % of the loan amount Minimum ` 500/Charges
Documenta- Above ` 2 lacs @ ` 200/- per lac Max ` 25000/-+ ST
tion Charges
BC Cir 333/2011
Reference
Purpose

14. SYNDVISHRANTHI (REVERSE MORTGAGE LOAN)

Target Group

Senior citizens of India who own self-acquired and self-occupied house property in India

Purpose
Borrower/s
Age

Supplementing income, any personal expenses, house repairs, etc. Loan amount should not
be used for speculative, trading and business purposes.
Single or jointly with spouse in case of a living spouse (max. two borrowers).
Age of first borrower should be above 60 years

Joint
borrowers

In case of married couple the loan shall be in the joint names even though either of them
may hold the title of the property. The applicant who is aged above 60 years shall be the
27

first borrower. However, the spouse/ joint borrower should not be below 55 years of age.
Borrower should be staying at self-acquired and self owned house /flat against which loan is
being raised as his permanent primary residence.
Borrowers will be required to inform the Bank when they cease to use this residence as their
permanent primary residence.
Ancestral or Commercial property owners are not eligible.
NRIs / PIOs (person of Indian Origin) are not eligible.
Title of the Borrowers should have a clear and transferable title in their names.
Title verification and search report for a period of 30 years to be obtained.
Property
The property should be free from any encumbrances.
In case of property purchased by availing Housing Loan from our/ any other Bank, it will be
considered for RML, subject to closure of the Housing Loan account out of the eligible
lumpsum portion of RML.
Residual Life Should be at least 20 years in case of single borrower and 25 years in case of spouse being
below 60 years of age.
of property
Certificate from empanelled engineer/architect will be required to be obtained for this
purpose, in addition to valuation of property.
Equitable / simple mortgage of residential property
Security
Minimum 10 years and Maximum 15 years
Tenor
Or
Till death of the borrower(s), whichever is earlier.
Disbursement Monthly / quarterly payments by credit to SB account in the joint names of the borrowers
/Periodicity of operated by E or S.
availing loan
Lumpsum payment not exceeding 20% of the loan amount with a cap of ` 15.00 lacs. This
shall be opted once during the tenure of the loan. Lumpsum payments may be made
conditional and limited to special purposes viz. medical exigencies, upgradation, renovation
& extension of the house, repayment of existing loan on the property.
Disbursement shall be at the discounted value of sanctioned loan amount or eligible
lumpsum disbursement amount.
In case of death of the first borrower during the disbursement period, the payments will
continue to be made to the spouse who has joined the transaction as co-borrower.
Eligible
Residential
Property

28

Quantum of
loan

Disbursement
Lumpsum
Disbursement
of loan
Repayment/
Settlement
Foreclosure

Prepayment
Valuation/
Revaluation of
property and
option to adjust
payments

Interest Rate
Processing fee
Right of
Rescission
Insurance
and
maintenance
of house
property
Reference

Independent House

Age of Borrower

Flats

60-65
66-70
71-75
Above 75
Age of Borrower

Loans as proportion of
Assessed value of property*
70%
70%
75%
75%
Age of Flat
< 2 years
2-5 years
60%
55%
65%
60%
70%
65%
75%
70%

5-10 years
45%
50%
55%
60%

60-65
66-70
71-75
Above 75
Minimum loan amount - ` 5.00 lacs
Maximum loan amount Independent House - ` 1.00 Cr; Flats - ` 50 lacs
As per the discounted value
Lump-Sum disbursement not exceeding 20% of the loan amount with a cap of ` 15.00
lakhs may be opted once
The loan shall become due and payable only when the last surviving borrower dies or opts
to sell the home, or permanently moves out of the home for to an institution or to relatives.
The loan shall be liable for foreclosure
i) If the borrower(s) has/have not stayed in the property for a continuous period of one year
or
ii) If the borrower(s) fail(s) to pay property taxes or maintain and repair the residential
property or fail(s) to keep the home insured, the Bank reserves the right to insist on
repayment of loan
No prepayment penalty. Prepayment charges of 1% in case of takeover by other banks/
financial institutions,
Revaluations will be done at intervals of 3 years.
Option to revise the periodic/ lumpsum amount every 3 years along with revaluation. Bank
may decide to revise the amount at any time earlier than 3 years.
Loan to Value ratio not to exceed 90% at maturity.
12.25 % p.a. (Fixed).
0.50% of the loan amount subject to maximum of ` 10,000/Up to three business days to cancel the transaction. Processing fee shall not be refunded in
such cases.
The house property shall be insured by the borrower at his cost against fire, earthquake and
other calamities. The borrower shall ensure to pay all taxes, charges etc. Bank shall pay
insurance premium, taxes, charges etc. by reducing the loan amount to that extent. The
borrower shall maintain the property in good condition.
BC Cir 318/2008, 164/2010,177/2011,36/2013

15. SYNDSWARNA AND SYNDSWARNA EXPRESS

Purpose
Eligibility
Facility

All purposes under Priority and Non-Priority Sector against pledge of jewels.
Existing and new customers who are properly introduced to the Bank (KYC norms to
be adhered to). Opening of SB account need not be insisted for loans upto ` 50,000/Loan or Overdraft. In case of overdraft the maximum permissible limit is ` 10.00
lac.
29

Assessment
Scale of
Finance
Rate of
Interest
Penal Interest
Repayment
Period
Security
Guarantee
Margin
Processing/
Documentation charges
Appraiser Fee
Documentation

Branch Managers may appraise the jewels for jewels up to ` 25000/- subject to getting
the same appraised by the Jewel Appraiser subsequently
Scheme 1 - 22 ct & above ` 1900/- per gram or 75 % of net value
Scheme 2 - 22 ct & above - ` 1800/- per gram or 75 % of net value
(Subject to change depending on market price)
BR+1.75%
2 % above the applicable rate on all overdue loans except those granted under Priority
Sector up to a limit of ` 25000/-.
Scheme 1 - Up to 12 months in one bullet payment
Scheme 2 - Above 12 months and up to 24 months in one bullet payment
Pledge of Gold Jewels of adequate value/Hall Marked jewellery, with stipulated
margins
Not required
Minimum 25 %
Waived (Circular 277/2012)

50 paise per `100/- subject to a minimum of ` 30/- maximum ` 300/AF 651 (old AF 456) Application Cum Letter of Pledge.
OF 1904 or OF 1903 Stamped Receipt cum Debit Slip.
ASD-3 (General Agreement) To be taken only in case of Overdraft facility only
For loans of ` 5.00 lacs and above Prior clearance from RO required
Reappraisal for loans of ` 1.00 lac and above - as on 31st July of every year at banks
cost
BC Cir 71/2012, 224/2012 , 254/2012, 277/2012, 95/2013,64/2014(for incentives) and
Reference
73/2014
16. SYND VARSHINI
Installation of Rainwater harvesting unit
Purpose
Classification OSL
75% of the estimated cost as per the unit cost stipulated below:
Quantum
Plot Size
Unit Cost
up to 1500 sq.ft
` 57700.00
More than 1500 sq.ft upto 2400 sq.ft
` 73000.00
More than 2400sq.ft upto 5000 sq.ft
` 82000.00
More than 5000 sq.ft
` 185000.00
25 %
Margin
Disbursement As far as possible, Specific Release to be done in 2-3 installments
Suitable Third Party
Guarantee
1. Hypothecation of pipeline with barrel, filter etc.
Security
2. Continuation of mortgage of residential property in the case of existing housing loan borrowers.
3. No collateral security in the case of borrowers enjoying SyndSaral loans (salaried class) even
though they have housing loans with other Banks/FIs, subject to production of regularity certificate
from the concerned Bank/FI.
4. In the case of non-salaried class, if they fulfill income and other criteria as applicable under
SyndSaral facility, loan may be granted without any collateral security, even if they have availed
housing loans with other Banks/FIs, subject to Production of regularity certificate from the
concerned Bank/FI.
Interest Rate
Repayment
Processing/
Documentati-on
Charges

BR+2 (Cir 40/2011/BC)

60 EMIs
Upto ` 25000/` Nil
Above ` 25000/` 500/30

17. SYNDMSME
Target
group
Eligibility

Nature of
facility
Assessment

Rating

Margin

Renewal
Security

Micro and Small Enterprises (MSE) in Manufacturing and Service sector as per
MSMED Act 2006 and RBI/GOI guidelines
All Micro and Small Enterprises (MSE) including Retail Trade classified under
MSE.
There is no cap on Maximum loan amount
Loans to Retail Trade accounts which form part of Service Enterprise is now
enhanced to ` 2 crore from the earlier ` 20 lakh under MSE.(Ref BC Cir
324/2012)
Overdraft/ Term Loans, Bill Limits, LCs/BGs may be offered in one package within
a predetermined overall limit.
Working Capital requirements of borrowers shall be assessed by adopting the
following methods:
(a) Simplified method in case of borrower seeking fund-based working capital
limits up to ` 25.00 lakhs adopting a Holistic approach.
(b) Turnover method in the case of borrower seeking fund based working capital
credit limits up to ` 5.00 Crores. If the borrower is eligible for higher credit limit as
per EWCL method, the same can be adopted instead of turnover method.
(c) Eligible Working Capital Limit (EWCL) method in case of borrowers seeking
Working capital limits of above ` 5.00 Crores up to ` 20.00 Crores.
(d) Cash budget or EWCL method for working capital needs of borrowers seeking
fund based limit of above ` 20.00 Crores
(e) Assessment of working capital on cash budget method for seasonal and
construction industry wherever adequate MIS support is available with the
borrower.
(f) For assessment of working capital requirements of export customers, any of the
above methods, which is most suitable and appropriate to their business operations
may be adopted.
(g) In the case of credit limits of above ` 2.00 Crores for IT & software industry,
cash budget method shall be adopted for assessment (refer circular No.218-1998BC).
Projection shall not exceed 125% of the sales reported in the earlier year unless
Sanctioning Authority is fully convinced of partys strategy.
Limit up to ` 2.00 lakhs
: Simple method
Limit above ` 2.00 lakhs up to ` 50.000 lakhs : Retail Rating models
Above ` 50.00 lakhs
: Software driven RAM rating
Up to ` 25000
: Nil
Above ` 25000 up to ` 1.00 Crore
: 15 %
Above ` 1.00 Crore
: 20 %
Once in two years in case of OD subject to annual review based on ADV 85.
Amount
Primary Security
Collateral Security
Primary
security
No collateral security
Up to ` 10.00 lakhs
/mortgage of land and
building associated with
the business shall be
obtained and eligible
Accounts shall be covered
under CGMSE.

31

Guarantee

Interest
Rate

No collateral security
Above ` 10.00 lakhs up Primary security
to ` 1.00 Crore eligible /mortgage of land and
building associated with
under CGMSE cover
the business. All accounts
shall be covered under
CGMSE
The sanctioning authority
i) Above ` 10.00 lakhs Hypothecation of
shall
explore
the
not
eligible
under machinery/vehicle/plant
CGMSE cover like Retail &equipments/stock and possibility of obtaining
Trade and Educational book debts(Not older than Mortgage of properties
3 months) to cover 110% /other securities of
Institutions.
appropriate value
ii) Credit facilities more of the value of the limit
than ` 1.00 Crore
No third party guarantee shall be obtained for credit facilities eligible for coverage
under CGMSE. For other accounts not covered under CGMSE, suitable third party
guarantee shall be obtained.
Third party guarantee is not compulsory if the facility is fully secured by
mortgage/NSC/ KVP/
SV of LIC policy/ RBI relief bonds to the extent of 100% of the amount of advance
(in addition to hypothecation of stock).
The owner of the property /security should join the transaction as guarantor. (If the
property/security are not owned by the borrower).
BR+0.50 %
Up to ` 50000
Above ` 50000 up to ` BR+1.00 %
10.00 lakhs
BR+1.25 %
Above ` 10.00 lakhs up Synd 1 and 2
to ` 1.00 crore
Synd 3 and 4
BR+1.50 %

Above ` 1.00 crore

Process
note

Insurance

Synd 5 and 6

BR+2.00 %

Synd 7 and below

BR+2.50 %

Synd 1
Synd 2
Synd 3 and 4
Synd 5 and 6
Synd 7 and below

BR+1.25 %
BR+1.50 %
BR+2.50 %
BR+3.00 %
BR+3.50 %

All Micro Enterprises will get a rebate of 0.50% in rate of interest for prompt
repayment, to be reimbursed at the time of closing the loan account
The tenor premium of 0.25% shall be added for all term loans of 36 months and
above as per the guidelines.
For credit facilities up to 10.00 Lakhs, simplified process note as per Cir. 195/2012
shall be used. For credit facilities above 10.00 lakhs, process notes shall be
prepared as per HO Cir. 229-2009-BC dated 13.10.2009 as under:
AF 575-For Term loan with or without Working capital less than 2 Crores.
AF 576-For Working capital less than 2 Crores.
AF 580(R)-For Term loan and/or Working capital of 2 Crores and above.
Insurance to be insisted if loan limit exceeds 1.00 lakh

Application Type of security

and
Stock,
Book
Documenta- receivables
tion

Forms to be obtaied
debts, SP 1208 (OG. 74)
OF 1904 R (OG. 28 A&B)
ASD 4, ASD 6
32

Plant & Machinery

Others

Reference
Circulars

ASD 4 , OF 1904 R (OG. 28 A&B)

SP 1208 (OG. 74),ASD 13,
ASD 6, AF 444
More than one type of SP 1208 (OG. 74), OF 1904 R (OG. 28A&B),ASD 4,
security
ASD 6, AF 553 (R), ADV 10, 18, 40 combined
Blank Transfer Form and copy of Registration Certificate confirming the lien
notification shall be obtained in case of vehicles.
ASD 14-Combined Letter of Authority for LIC, UTI Units, NSC etc.
ASD 7, 8, 9, 10, 11a & b and 12 in the case of mortgage of immovable property.
Additional documents of OG 33/OG 103/OG 78 in case of partnership firm.
The proof of coverage of accounts/CGPAN No. shall be obtained from RO.
Cir 287/2011, 98/2012, 05/2013, 2/2014.

18. SYND RICE MILL

Direct Agriculture Finance : To individual farmers for pre-harvest and post-harvest
activities such as spraying, weeding, grading, sorting, processing and transporting
undertaken by individuals, SHGs, Co-operatives in rural areas
Indirect Agriculture Loans : To food and agro-based processing units with
investments in plant and machinery up to ` 10.00 crore
a. Existing profit making units.
Eligibility
b. Takeover of good units is also permitted, subject to observance of take-over norms
communicated under Credit Policy/Credit Risk Policy of the Bank subject to hurdle
rate of SYND 4 and above
c. New Units with hurdle rate - SYND 4 Rating and above
a.
Acquisition/construction
of
machinery/factory
building
for
Purpose
modernization/expansion.
b. Working capital requirements only for Rice Millers. Rice Millers doing milling
activity on job work basis need not be given working capital facility.
Nature of Term Loans
Working Capital Limits
facility
Non-Fund based limits
Fund Based Facility
Term Loans
15 % - 25 %
Margin
Working Capital limit
Type of stock
Margin
Paddy and Rice
20%
Target
Group

Quantum
Security

Brokens
25%
Bran
30%
Gunny Bags
40%
Book Debts
25%
Non Fund Based Facility Rating of Account
Margin
Synd 1 and 2
NIL
Synd 3
5%
Synd 4
10%
Quantum of loan amount/limits shall be assessed/arrived at by following the policy
guidelines prescribed for Micro, Small and Medium Enterprises (MSME)
Primary Security: Mortgage/Hypothecation/pledge of assets created out of bank
finance.
Collateral security: Mortgage of land and building/ Hypothecation of Machinery
/tangible security belonging to borrower/ partners/ directors/guarantors equivalent to
not less than 50% of the exposure.
33

Rice Mills

Up to ` 2.00 Lakhs
Above ` 2.00 Lakhs

BR+0.25 %
Synd 1
BR+0.75 %
Synd 2
BR+0.75 %
Synd 3
BR+1.00 %
Synd 4
BR+1.00 %
Tenor premium of 0.25% is applicable, in case of term loans
above 3 years
Rice Millers doing Up to ` 2.00 Lakhs
BR+0.25 %
milling activity on Above ` 2.00 Lakhs
Synd 1
BR+1.25 %
job basis
Synd 2
BR+1.25 %
Synd 3
BR+1.50 %
Synd 4
BR+1.50 %
Tenor premium of 0.25% is applicable, in case of term loans
above 3 years
Export credit
Synd1,2,3 and 4 Limit for 3 years
Repayment Working capital
subject to annual review
Other than Export credit Synd1,2 and 3 Limit for 2 years
subject to annual review
Other rated Accounts
Limit 1 year subject to renewal in 12
months
Term loans
7 years including gestation period of 6 months. Interest to be
serviced during gestation period
Liquidity Current Ratio
1.00 (Minimum)
Benchmark Working capital
Financial
Indebtedness Solvency 5:1
Parameters
Ratio (TOL:TNW)
as
in
Profitability
Net profit earning continuously
MSME
Term loans
Debt Equity Ratio
3:1
Average DSCR
Not less than 1.30
Interest

19. SYNDVYAPAR (IMPROVED)

Traders, Service Providers and Professionals/Self Employed
Eligibility
SOD / OSL (Repayment period not exceeding 60 Months)
Facility
Loan/Limit per ` 2.00 Crores maximum can be considered as WC/TL limit and also as a
party
combination of FB and NFB limits.
Working Capital
Assessment
Up to ` 25.00 20% of the projected turn over
Lakhs
Above ` 25.00 Not exceeding 125 % of the sales
reported in the earlier year.
Lakhs
Term Loan
Norms as per Credit Policy of the Bank
Rate of interest Up to ` 10.00 lacs BR + 2 %
Above ` 10.00 lacs SYND 1
SYND 2
SYND 3

BR + 2.25%
BR + 2.50 %
BR + 2.75%

SYND 4

BR+ 3.00 %

SYND 5

BR + 3.25%

SYND6

BR + 3.50%
34

SYND 7 And
below
Limits up to `
25.00 Lacs
Limits above `
25.00 Lacs

BR + 3.75%

Stock & book debts to cover 100 % of

and Primary Security Hypothecation of
the value of the limit
stock & book debts
Stock & book debts to cover 110 % of
(not older than 3
the value of the limit
months)
Collateral Security Limits up to ` Liquid securities Securities of face
Mortgage
of 25.00 Lacs
value equivalent to 100% of the limits
property / pledge of
Immovable property Security of
liquid
securities
value equivalent to 133% of the limits
(NSC/LIP/RBI
Combination of liquid securities and
Relief Bonds)
immovable property Value of
immovable property shall not be less
than 133% of the value of the portion
not covered by liquid securities
Limits above ` Liquid securities Securities of face
value equivalent to 100% of the limits
25.00 Lacs
Immovable property Security of
value equivalent to 150% of the limits
Combination of liquid securities and
immovable property Value of
immovable property shall not be less
than 150% of the value of the portion
not covered by liquid securities
Renewal once in 2 years, subject to annual review.
Validity
Not necessary if fully secured by Mortgage / Liquid securities apart from stocks.
Surety/
Owner of property to join as Guarantor / Surety, if the property is not owned by
Guarantor
the borrower.
Documentation AF708, ADV 80A
DF157, ASD-4, ASD6, DF 140(LA), AF 553 R for LIP
ASD7, ASD 8, ASD 9, ASD 10 (For additional mortgage), ASD11(a) or (b)
Stock/book debts should be equal to limit sanctioned/outstanding for credit
Others
limits up to ` 25.00 Lakhs.
Stock/book debts should be equal to 110 % of the limit sanctioned/ outstanding
for credit limits above ` 25.00 Lakhs.
Operations need not be controlled on the basis of drawing power
ADV44/ADV23 to be submitted quarterly.
Unaudited/audited Fin Statements have to be obtained every year for limits of `
10.00 lacs & above up to ` 25.00 lakhs. For limits of above ` 25.00 Lakhs,
audited financial statement is a must.
Copy of latest sales tax return must be submitted.
Copy of latest ITAO/IT return must be submitted wherever applicable.
Facility to be extended to existing clients and for new accounts which have
shown satisfactory operations at least for 3 months.
Desirable financial parameters shall be observed for limits above ` 10.00 lakhs.
Internal exposure norms shall be observed.
Basic Financial Parameters to be complied for facility of ` 10.00 lacs & above.
For Term loans of above ` 100.00 lakhs with repayment of 60 months and
above, upfront fee @ 1% of the loan amount to be collected.
Tenor premium of 0.25% on all term loans to be added.
190/2006,144/2012
Reference
Security
Margin

35

Circulars

20. SYNDDOCTOR
Professionally qualified Doctors, Registered Medical practitioners in Allopathy,
Homeopathy, Ayurveda, Unani including Dentists, Pathologists and Veterinary.
Promoters of Hospitals, Nursing Home, Pathological Labs, Poly-clinics,
Diagnostic Centres, X-ray labs etc., At least one or more of the
Promoters/Partners/Directors of Health Care unit shall be a qualified doctor with
more than 50% share/ownership.
Eligibility
MSEs in Service Sector with original investment in equipments not exceeding `
200.00 lacs.
Individuals, Prop, Partnership firms, Pvt Ltd Cos, Societies and Trusts
1. Setting up Clinic, Nursing Home, Pathological Lab, Drug/Surgical Store
Purpose
etc.,
2. Construction/Expansion/Modernization/of existing Clinics/Hospitals
(excluding cost of land)
3. Purchase of Surgical, X-ray, CT scan, Electro Medical equipments,
replacements/implants for Hip/Knee/Shoulders/Spine etc.
4. Purchase of Ambulance, Mobile Clinic, Computers, UPS, Air
conditioners, Generators, Refrigerators, Vehicles etc
5. To meet the cost of Rent, Electricity, Purchase of Medicines, Salary and
other maintenance cost of existing Clinic/Hospitals etc.
6. To establish/run Fitness & Health Care Units, Naturopathy, Ayurvedic
Care, Yoga, Acupuncture, Acupressure, Medical Consultancy by target
group.
Nature
of
OD/OSL/Bills Limits/LCs/BGs
Credit facility
Rs 500 lacs - Maximum
Quantum
Margin
Upto ` 100.00 lacs -15 %
Above ` 100.00 lacs - 20 %
Rate of interest Upto ` 100.00 Lacs -BR + 1.25 %
Above ` 100.00 Lacs -BR + 1.75 %
Tenor premium 0.25% for term loans.
50 % of applicable processing, Doc, Mortgage charges as per Cir 134/2012
Processing
charges
Security
For Loans upto ` 100.00 lac under MSE
Only primary security/mortgage of land and building associated with the
business
No collateral security and /or third party guarantee shall be covered under
CGMSE without exception.
For Loans above ` 100.00 lacs under MSE where CGMSE cover is not available
Hypothecation of assets/Mortgage of property & Collateral security as under
a) Primary Security
Mortgage/Hypothecation equipments/property/chargeable current/fixed
assets, vehicles etc
b) Collateral Security
Mortgage of property/other securities etc valued at least 50% of the limits
Maximum 7 years. Monthly or quarterly installment based on cash flow.
Repayment
Maximum 18 months in eligible cases.
Repayment
Holiday
TARGET
GROUP

36

Guarantee

Upto ` 100.00 lacs

Above ` 100.00 lacs
(Where CGMSE cover not available)
Synd 4 and above

No third party guarantee

Suitable third party guarantee

Minimum
Rating
CGMSE
All loans upto ` 100.00 lacs shall be covered without exception.
Coverage
Other terms &
Periodical Insurance, Inspection of securities
conditions
No collateral needed if value of primary security mortgaged more than
150% and realizable market value of land & building itself is more than
100%
All other terms as per Synd MSE scheme (BC Cir 287/2011)
BC Cir 275/2013
Reference

21. SYNDCASHEW
New/existing Cashew processing Units/Industry under MSMEs
Target Group
Eligibility
Individuals, Association, Proprietorship, Partnership firms and Private
Ltd Co.
Satisfactory existing customers.
Micro, Small and Medium Enterprises (MSME) in Manufacturing Sector
with original investments in Plant and Machinery not exceeding ` 10.00
crores.
Purpose
For new machinery/equipments/vehicles/stock
Working Capital requirement
Value addition, technology up gradation and shelf life enhancement
Term loan and/ Overdraft and or Non fund based facility.
Classification
Pre-shipment and post-shipment advances
Quantum
` 500.00 lacs Maximum
Synd 5 and above
Minimum
Rating
Margin
Upto ` 100.00 lacs 15%
Above ` 100.00 lacs 20%
Guarantee
No third party guarantee for upto ` 100.00 lacs under MSEs
Rate of interest

Processing
charges
Security

Rating

Micro and Small Medium

Export Credit (PreEnterprises
Enterprises
Shipment Credit)
Synd 1
BR+0.50%
BR+0.75%
Base Rate
Synd 2
BR+0.50%
BR+1.25%
Base Rate
Synd 3
BR+1.25%
BR+1.75%
BR+0.25%
Synd 4
BR+1.50%
BR+2.25%
BR+0.25%
Synd 5
BR+2.25%
BR+2.75%
BR+0.50%
50% of the applicable processing, DOC and mortgage charges as per BC Cir
134/2012
Upto ` 100.00 lacs covered under CGMSE
Only primary security/mortgage of land and building associated with the
business
No collateral security and /or third party guarantee shall be covered under
CGMSE without exception.
Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.
Above ` 100.00 lacs not covered under CGMSE: Mortgage/Other security
valued atleast 50% of the limits.
37

Maximum 7 to 10 years including repayment holiday/moratorium period.

Repayment
CGMSE
All loans upto ` 100.00 lacs under MSE shall be covered
coverage
Other terms &
Enhancement of limit for existing parties RO can permit on case to case
Conditions
Banks hypothecation to be noted in RTO records and RC book for
vehicles
Comprehensive Insurance with banks clause
0.25% rebate for SyndExport Gold card holder (Subject to minimum of
base rate)
Entire Forex transactions to be routed through our Bank
Finer rate is applicable to Synd 1 to 5 rated accounts only
Tenor premium 0.25% for Term loans
All other terms as per SyndMSE and all statutory requirements to be
complied
BC Cir 275/2013
Reference
22. SYNDTRANSPORT
Existing/new transport operators engaged in transportation of passengers and
Target Group
goods for purchase of New vehicles for commercial purpose
Eligibility
Individuals, Association, Proprietorship, Partnership firms and Private
Ltd Co.
Original investment in vehicles and equipments not exceeding ` 2.00
crores
To purchase all makes of
Purpose
Transport/utility vehicles
Passenger vehicles like Autorikshaws, Tourist vehicles, Cabs (not for
personal use)
Transport vehicle for delivery of products/services of MSs
For Educational Institutions for transportation of students/faculty/staff
To meet the Working Capital requirement for maintenance of existing fleet of
vehicle and office expenses etc.
Items to be Chassis + Body Building cost + Registration, Insurance and Road Tax excluding
accessories
financed
Nature
of OSL and /or OD
credit facility
Quantum
` 100.00 lacs Maximum
Synd 4 and above
Minimum
Rating
15%
Margin
Rate of interest Upto ` 50,000/BR + 0.50%
Above ` 50,000/- upto ` 10.00 lacs
BR + 1.00%
Above ` 10.00 lacs
BR + 1.25%
50% of the applicable processing, DOC and mortgage charges as per BC Cir
Processing
134/2012
charges
Security
Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.
No collateral security/ third party guarantee
To be covered under CGMSE without exception
Maximum 7 years including repayment holiday/moratorium period of 3 months
Repayment
No third party guarantee
Surety

38

Other
terms
and conditions

Reference

BC Cir 275/2013

All loans to be covered under CGMSE without exception

Comprehensive Insurance with Bank clause
Economic viability with income generation and surplus to be worked out
Average DSCR not less than 1.30
Tenor premium of 0.25% on term loans
All other terms as per Synd MSE scheme

23. SYNDMARBLE
Marble, granite and stone crushing units
Target Group
Existing units for at least 2 years and shall be MSE in manufacturing sector
Eligibility
with original investment in plant and machinery not exceeding ` 5.00 crores
Purpose
To acquire new equipments/machinery/vehicles to start and for expansion
To meet Working Capital requirements
Nature
of OSL and /or OD and Non fund based unit
credit facility
Quantum
` 500.00 lacs Maximum
Synd 4 and above
Minimum
Rating
Margin
Up to ` 100.00 lacs
15%
Above ` 100.00 lacs
20%
Rate of interest Upto ` 100.00 lacs
BR + 1.00%
Above ` 100.00 lacs
BR + 1.75%
50% of the applicable processing, DOC and mortgage charges as per BC Cir
Processing
134/2012
charges
Security
Upto ` 100.00 lacs
Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.
No collateral security/ third party guarantee
To be covered under CGMSE without exeption
Above ` 100.00 lacs not covered under CGMSE :
Mortgage of property/other securities etc valued atleast 50% of the limits
sought shall be obtained
Maximum 7 years including repayment holiday/moratorium period
Repayment
No third party guarantee
Surety
Other
terms
Hypothecation to be noted in the RTO records and also RC books
and conditions
Comprehensive Insurance with Bank clause
All statutory requirement/licenses including PCB clearance
Tenor premium of 0.25% on term loans
All other terms as per Synd MSE scheme
BC Cir 275/2013
Reference
24. SYNDTEXTILE
Persons engaged in textile sector and manufacture of readymade garments
Target Group
MSE in manufacturing sector with original investment in plant and
Eligibility
machinery not exceeding ` 5.00 crores
Purpose
To acquire new equipments/machinery/vehicles to start and for
expansion
39

 To meet Working Capital requirements

of OSL and /or OD and Non fund based unit

Nature
credit facility
Quantum
Minimum
Rating
Margin
Rate
of
interest
Processing
charges
Security

No cap on maximum (Unit should be classified as MSE)

Synd 4 and above
20%
Upto ` 100.00 lacs
BR + 1.00%
Above ` 100.00 lacs
BR + 1.75%
50% of the applicable processing, DOC and mortgage charges as per BC Cir
134/2012
Upto ` 100.00 lacs
Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.
No collateral security/ third party guarantee
To be covered under CGMSE without exception
Above ` 100.00 lacs not covered under CGMSE :
Mortgage of property/other securities etc valued at least 50% of the
limits sought shall be obtained

Maximum 7 years including repayment holiday/moratorium period

Repayment
No third party guarantee
Surety
Other
terms
Hypothecation to be noted in the RTO records and also RC books
and conditions
Comprehensive Insurance with Bank clause
All statutory requirement/licenses
Tenor premium of 0.25% on term loans
All loans to be covered under CGMSE without exception
All other terms as per Synd MSE scheme
BC Cir 275/2013
Reference
25. SYNDCONTRACTOR
All registered A Class Civil, Electrical, Mechanical, Mining and Transport
Target Group
Contractors undertaking works on behalf of Central/State Govt Dept/ Public
sector undertakings and reputed Pvt sector organizations etc.,
1. A class registered contractors( Individuals, Prop, Partnerships, Pvt
Eligibility
Ltd/Ltd Cos) engaged in the line of activity
2. Having audited financial statements
3. Classified as MSE Service sector with original investment in Equipments
not exceeding ` 2.00 crores.
1.To acquire New Equp/Machy/Vehicles for expansion of activity
Purpose
2. To meet Working Capital requirements of existing and new units.
Nature
of Term Loan and /or Overdraft and Non Fund based limit.
credit facility
Quantum
` 200.00 lacs Maximum
20 %
Margin
If Covered under CGMSE :
Security
1. Hypothecation of Equipments/Machy/Vehicle/Stock purchased
2. Primary Security/ Mortgage of property associated with business
3. No Collateral security/ III Party Guarantee
If not Covered under CGMSE :
1. Hypothecation of Equipments/Machy/Vehicle/Stock purchased
2. Primary Security/ Mortgage of property associated with business
3. Collateral in the form of equitable mortgage of immovable property valued not less than
40

100% of limit for all loans/ limits above ` 100.00 lacs / not covered under CGMSE

Minimum
Synd 4
rating
Cash Budget Method
Assessment of
Working
Capital
Rate of interest Upto ` 100.00 Lacs -- BR + 1.25%
Above ` 100.00 Lacs -- BR + 1.75%
No third party guarantee for loans covered under CGMSE
Guarantee
50% of applicable processing/commission charges as per Cir 134/2012/BC
Processing
Charges
Term Loans
: Maximum 7 years including repayment holiday/moratorium
Repayment
period
Working Capital: To be renewed every year.
(Installment for Term Loan to be fixed based on cash flow at monthly/Qtly/H
Yly)
Eligible loans shall be covered
CGMSE
Coverage
Other
terms 1 All statutory requirements/licenses to be obtained.
and conditions 2.Valid registration as A class contractor with the respective registration
authority shall be obtained
1. Tenor premium of 0.25% applicable for Term Loans
2. Hypothecation of vehicles, Comprehensive insurance of assets with Bank
clause
3. Power of Attorney wherever applicable is to be obtained and sent to the
concerned Dept by Regd post with Ack Due
4. Periodical inspection of securities as per extant guidelines.
5. All other guidelines as per SyndMSE scheme to be followed
Borrowers shall be provided with Instant Global Debit Cards, SMS Banking,
Other Salient
Mobile Banking, ABB, SyndSuraksha and SyndArogya scheme benefits.
Features
BC Cir 131/2014
Reference

41

II. LIABILITY PRODUCTS

A. SAVINGS BANK ACCOUNT:
Customer Banker relationship starts with CASA:
Prescribed Monthly Average Balance[MAB] ( Metro / Urban / Semi Urban/ Rural)
Rate of Interest 4.0% (at present)
Cheque book facility subject to maintenance of stipulated MAB
Debit card
Internet Banking
SMS and Mobile Banking
Synd Suraksha Term Insurance with ADB, at competitive rates.
i) PREMIUM SAVINGS ACCOUNT:
Unique, Sweep in Sweep out facility
` 10,000 minimum monthly average balance
Amount over and above the prescribed limit gets automatically swept out into a FD for 180 days
in units of ` 1,000/ In the event of meeting any urgent needs, the FD is swept back into the Premium SB A/c in
required number of units of ` 1000/- without penalty.
Last In First Out (LIFO) method is used while breaking FD, to minimize the interest loss to the
customer.
Reference: BC Cir. No. 20/2002
ii) MULTI-CITY SB ACCOUNT:
Monthly Average Balance (MAB) to be maintained in the account is ` 25000/ No upper limit for transactions through Account Payee cheques
Self cheques can be paid in cash upto an aggregate limit of ` 50,000/- in a day in non-home
branches.
Reference: BC Cir. No. 058/2004
iii) SYND SAMANYA SAVINGS ACCOUNT ( SMALL ACCOUNTS OR BASIC SAVINGS
BANK DEPOSIT ACCOUNTS):
No Minimum Balance ( Zero Balance Account)
Rate of Interest 4.0% (at present)
No restrictions on number of Cash Receipts, but aggregate of all credits in a financial year shall
not exceed rupees one lakh
Cash withdrawal At Branch Counter 50 p.a. free of charges
The aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand;
and the balance at any point of time does not exceed rupees fifty thousand.
No Restrictions for ATM Transaction.
Cheque Book available if MAB in SB is maintained and KYC is complied with as per norms.
(As per RBI guidelines Basic Savings Bank Deposit [BSBD] accounts has to replace the existing
No frill accounts. It is under implementation)
Reference: BC Cir No. 243/2012, 047/2013, 138/2014
42

iv) SYNDNAVARATNA SAVINGS BANK ACCOUNT:

A unique group Savings Bank account specially designed for the salaried class employed with
MNCs/Blue Chip Companies/reputed Private organizations/Government and Semi-Government
undertakings.
Special Features of SyndNavaratna: (Circular No.294/2012/BC dt. 13.10.2012)
1. Zero Balance Facility
2. Instant Global Debit Card
3. Add-on debit card to joint account holder
4. SMS Banking facility
5. Funds transfer facility through RTGS/NEFT upto ` 1.00 lac
6. Internet Banking & Mobile Banking Facility
7. Issuance of DD /PO free of charge (six instance in a year upto ceiling of salary credit per
instance)
8. Payable at par, Cheque facility
9. Temporary overdraft facility for 15 days (upto one month net salary after six months of
continuous salary credit through employer) subject to obtaining prescribed undertaking letter.
Target Group/Eligibility:
Minimum of 25 employees per organization should be drawing their salary through direct credit by
the employer to their Savings Bank account. Regional Head has the discretion to relax the number
of employees to 10 in deserving cases.
The employers undertaking to credit the monthly salary in the employees Savings account
maintained with our Bank, to be taken and mandate for crediting the salary shall not be changed by
the employer without the NOC (no objection certificate) of the Bank.
In case the monthly salary is not credited into the account for more than three consecutive months,
the special features offered under the facility stands withdrawn and the account shall be treated as
Normal savings account and all charges shall be levied as applicable.
Reference: BC Cir. No. 294/2012
B. CURRENT ACCOUNT:
For Traders, Business Enterprises, Partnership firms, Private and Public limited companies,
HUFs/specified associates, Societies, Trusts, etc.
Prescribed Minimum monthly Balance ( Metro / Urban / Semi Urban/ Rural)
Cheque book facility subject to maintenance of stipulated MAB (Monthly Average Balance)
Debit card for Proprietorship accounts
Internet, SMS and Mobile Banking
i) MULTI CITY CURRENT ACCOUNTS:
The following are the 3 variants of Multi-City Current Accounts:
S. No.

Monthly Minimum Average

Balance

Name

(MAB ) `
I

Synd Silver Current Account

25,000

II

Synd Platinum Current Account

2,00,000

II

SyndFlexi Premium Current Account

(with sweep-in sweep-out facility)
43

1,00,00,000

Multicity Payable at par cheques

Cash withdrawal by self at non-home branches free (limits apply)
No upper limit for payment of crossed third party cheques upcountry
Upcountry Cash deposit for credit of home-branch A/c free of charge
Collection of outstation cheques free (limits apply for Synd Silver Current Account)
Online remittances free for Synd Platinum Current Account & at concessional rates for Synd
Silver Current Account
Reference: BC Cir. No. 36/2008, 198/2008, 78/2010
ii) SYND FLEXI PREMIUM CURRENT ACCOUNT
A New Current A/c Product, with Sweep-out and Sweep-in facility, for High Value Customers
The features of Synd Flexi Premium Current Account are as under:
All Individuals, Corporate, Proprietorship concerns, Partnership concerns, Associations,
schools, etc. (excluding banks) who are eligible to open Current Account are eligible to open
accounts under this scheme.
Minimum Monthly Average Balance of ` 100.00 lakhs is to be maintained in the account.
Amounts available in the account in excess of ` 100.00 lakhs will get automatically swept-out
into
A Fixed Deposit for 7 to 14 days (minimum 7 days & maximum of 14 days) in units of ` 100.00
lakhs, once in a week.
Rate of interest applicable to Bulk Domestic Term Deposits of ` 1.00 Crore & above of the
tenor of 7 14 days is applicable to the fixed deposits swept-out from Synd Flexi Premium
Current Account.
The customer has to opt for the specific tenure for which the amount shall be swept-out to be
placed in fixed deposit, within the prescribed range of 7 to 14 days. The customer shall exercise
this option while opening the Synd Flexi Premium Current Account (one time option).
In the event of shortfall in the balance in Synd Flexi Premium Current account for meeting
clearing cheques or other urgent needs, the fixed deposit will be broken prematurely into units
of ` 100.00 lakhs and swept back into the Flexi Premium Current account free of cost, to the
extent of meeting the need.
Even while breaking the fixed deposit, only the most recently converted fixed deposit is first
broken to minimize interest loss to the customer, following the principle of Last in - First out.
No interest is payable on amounts that have been swept-in from the fixed deposits before the
completion of 7 days.
No penalty is charged for breaking the fixed deposit prematurely. However, the amount swept-in
earns interest for the period completed (7 to 14 days) at the applicable rate.
Only amounts swept-out of Flexi Premium account are eligible for sweep-in and not any other
Term deposits held in the name of the customer.
When the swept-out fixed deposits mature, the principal will be renewed, crediting the interest
to the Synd Flexi Premium Current account.
No separate deposit receipt will be issued. All entries will be reflected in the statement of
account of the Synd Flexi Premium account.
No loan shall be considered against the amount swept-out and invested in fixed deposits nor can
such deposits be taken as security for any credit facilities.
Nomination facility is available under the scheme.
Payment of interest under the scheme will attract TDS as applicable to normal domestic term
deposits.
Wherever the minimum Monthly Average Balance in the account goes below ` 100.00 lakhs in
a given month, service charges of ` 1,000/- will be levied for that month.
All other charges applicable to non-multi-city Current account are applicable to the Synd Flexi
Premium Current account also.
44

 Multi-city personalized payable at par cheque books may be provided to Synd Flexi Premium
Current accountholders.
Branches may note that Synd Flexi Premium Current Account shall be opened only with the
prior permission of CO: Planning & Development Department, Bangalore.
Points to be noted while opening accounts under the product:
Opening form obtained from the customer shall include a clause authorizing the Bank to vary
the tenor of the product in tune with regulatory instructions / guidelines on minimum period for
payment of interest. In such an eventuality, the Bank will also be at liberty to stop sweep-out
and sweep-in facility till further instructions from the customer.
Nomination made in the case of the flexi premium account and variations therein, if any, will be
applicable to the swept-out deposits also. This may be explained to the depositors and a note This nomination will also be applicable to swept-out deposit/s and renewals thereof unless
instructed otherwise, may be incorporated in the nomination column of the application
form/nomination register, to this effect.
Statement of account may include details of swept-out deposits chronologically with identifiable
deposit numbers.
Amount of interest paid along with the applicable interest rate shall be identifiable with the
individual swept-out deposits. Statement of accounts on swept-out deposits may have these
details.
TDS deducted on individual deposits may be reflected in the statement along with the deposit.
Refer: Cir. BC 078/2010.
iii) SYND FLEXI SUPER CURRENT A/C:
Bank has been receiving representations from some of the
ROs/Branches to introduce a product with sweep-out & sweep-in
facility to cater to the needs of other than high value customers of the
Bank, who are not able to maintain minimum average balances of `
1crore in their accounts.
Taking into consideration the benefits that would accrue to the Bank
by introducing the product and also to canvass the accounts of other
than high value customers a new product Synd Flexi Super
Current Account - with sweep-out & sweep-in facilities has been
introduced from 27.12.2013.
Features of Synd Flexi 1. Accounts under Synd Flexi Super Current Account scheme will
have sweep-out facility (sweep out to a Term Deposit).
Super Current Account
2. The minimum Monthly Average Balance required to be
maintained in the account is ` 5,00,000/3. Wherever the minimum Monthly Average Balance in the account
goes below ` 5,00,000/- in a given month, service charges of `
300/- plus Service Tax, will be levied for that month.
Precautions to be taken 1. To extend the facility to only those customers who are eligible to
open such accounts (Banks are not eligible under the scheme).
by Branches.
2. To specify the term of the Term Deposit as one year.
Back ground.

45

from 1. After opening a Current Account under the above product, a

Branch needs to maintain sweep-out instructions to extend sweepout facility to the account.
2. The Term Deposits opened by the sweep-out will automatically be
available for sweep-in to the same Current Account from which
sweep-out was effected.
3. Since it is a compounding product, interest get capitalized on every
quarter and on maturity , the total amount inclusive of interest
capitalized gets re-invested as new deposit.
4. A separate Term Deposit Product code 446- Sweep-Out one year
Synd Flexi Super has been created for this purpose.
Features of Product 1. It is a Term Deposit Product and Balances will appear under GL
Code 160080100 (since compounding product)
Code 446 Sweep-Out
one year Synd Flexi 2. Minimum amount of deposit ` 1, 00,000/-. Incremental amounts
Super.
shall be in multiples of ` 1, 00,000/-.
3. Tenure of the Term Deposit shall be one year.
4. Partial withdrawals are allowed in multiples of ` 1, 00,000/-. In
the event of premature closure of Term Deposit the rate of
interest shall be the rate applicable for the period the deposit has
actually remained with the Bank and not the contracted rate for
one year. No penalty is charged on such pre-mature closure of
Term Deposits. No interest is payable if the deposit is withdrawn
before completion of 7 days.
5. Nomination facility is available under the scheme to all
Individuals, Joint Account holders and Sole Proprietary
Concerns.
6. Payment of interest under the scheme will attract TDS as
applicable to normal Term Deposits.
Some
DOs
and 1. Do not issue a Deposit Receipts for the deposits opened out of
sweep-out.
DONTs
for
the
2. No Loan shall be arranged on the deposits created out of the
Branches:
sweep-out. This shall be made very clear to the customer in
writing while opening the account.
3. Cash transaction charges for cash withdrawal/deposit, prescribed
in the circular are to be collected by the Branches. No concession
will be considered under any circumstances.
4. Extend the facility to only eligible customers. Banks are not
eligible.
5. Customer ID for new customer is to be created with appropriate
customer category, as the TDS rate is based on the category.
6. If the existing account holder wants to open a new account under
this scheme, then use the existing Customer ID of the customer
which is already available in the system.
7. Use the same Customer ID for opening both Current Account and
TD account.
8. While setting sweep-out instructions, specify as one year.
9. 9. Sweep out instruction should not be set to any other TD
Product with different tenors other than 446 Product.
366/2013/BC
Dated 27.12.2013
Relevant Circular
Requirement
Branches:

46

C. VARIOUS TERM DEPOSITS:

i) FIXED DEPOSIT:
Salient features of the scheme are:
Minimum deposit ` 1000/Deposits accepted for periods ranging from 7 days to 120 months.
Option available for receiving monthly interest at discounted rates or quarterly interest.
Premature withdrawal of deposit is permitted any time subject to payment of prescribed penalty.
Loans available upto a maximum of 95% of the deposit amount depending on the length of the
unexpired period of the deposit.
Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.
Nomination facility available.

ii) SOCIAL SECURITY DEPOSIT

An ideal deposit scheme with monthly income plan for aged / pensioners/ housewives.
Salient features of the scheme are:
Minimum amount of deposit is `1000/ Deposits accepted from 1 year to 10 years in completed quarters.
Option to earn interest on monthly (at discounted value) / quarterly basis.
Loan available upto 95% of the deposit amount depending on the length of the unexpired period
of the deposit.
Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.
Nomination facility available.
iii) VIKAS CASH CERTIFICATE
Salient features of the scheme are:
Minimum deposit ` 1000/- and thereafter in multiples of ` 100/Period of deposit ranges from 6 months to 10 years in completed quarters.
Interest compounded every quarter, principal + accrued interest paid on maturity.
Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.
Premature withdrawal of the deposit is permitted any time on payment of the prescribed penalty.
Loans upto a maximum of 95% of the balance available depending on the length of the
unexpired period of the deposit.
Nomination facility available.

iv) RECURRING DEPOSIT

Salient features of the scheme are:
Minimum deposit is ` 100/-per month.
Period of deposit ranges from 12 months to 10 years (in completed quarters)
Delayed payment of installments are accepted with nominal penalty.
Monthly minimum balance in the account earns compound interest every quarter.
No tax is deducted from the interest on the deposit.
Loans up to maximum of 95% of the deposit amount available depending on the length of the
unexpired period of the deposit.
Nomination facility available.
The rates of interest are as fixed by the Bank from time to time.

v) SYNDICATE SUVIDHA DEPOSIT

Salient features of the scheme are:
47

A Fixed Deposit with partial withdrawal facility

Deposit accepted for periods ranging from 15 days to 120 months.
Deposit accepted in multiples of ` 1000/- with a minimum of ` 10,000/Interest is payable every quarter.
Option is available to withdraw a portion of the deposit in multiples of ` 1000/- whenever
needed.
No penalty is payable on such partial withdrawals.
Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.
Nomination facility available.
The rates of interest are as fixed by the Bank from time to time.
Loan facility against the Deposit can be arranged upto 75% on the Balance amount.
Relevant Circulars: Cir No. 66/1992, 33/1998

vi) SYND TAXSHIELD DEPOSIT SCHEME:

SyndTaxShield is drawn on the lines of the Union Government notification on Bank Term Deposit
Scheme, 2006 for the purpose of Sec 80C(2)(xxi) of the Income Tax Act.
Enables tax savings under Sec 80C (2) (xxi) of the Income Tax Act.
Individuals/ HUF eligible.
Maximum Deposit ` 1,00,000/-per person p.a.
Tenure : Minimum of 5 Years
Additional rate of interest for Senior Citizens & Staff
No premature withdrawal facility available except in case of death.
No loan facility against this Deposit is available
Interest may be paid in lump sum on maturity/ quarterly/monthly at discounted value
Interest Income from these deposits liable for tax under the IT Act.
Relevant Circular: BC 362/2013.
vii) SENIOR CITIZENS' SECURITY DEPOSIT

Salient features of the scheme are:

Meant for Senior Citizens above 60 years of age.
Minimum amount of deposit is ` 1000/Period of Deposits is 12 to 120 months Interest on the deposit is 0.5% above the normal rate.
Interest payable at monthly (discounted rates) or quarterly intervals.
Premature withdrawal of deposit is permitted any time without levy of penalty. Accounts closed
before completion of 12 months are not eligible for additional interest of 0.5%.
Exemption from maintaining prescribed minimum balance in savings Bank account.
Nomination facility available.
viii) PIGMY DEPOSIT SCHEMES
a) Pigmy 1928:
Bank's authorised Pigmy Agents collect daily savings at doorsteps.
Period of the scheme is 63 months.
Minimum of ` 5/- per day is collected.
Conditional Premature withdrawal of deposit permitted.
Loans up to maximum of 75% of the deposit available.
Nomination facility available.
No tax deducted for the interest on the deposit.
b) Pigmy Plus 2007
48

Bank's authorised Pigmy Agents collect daily savings at doorsteps.

Period of the scheme is 72 months.
Minimum of ` 5/- per occasion is collected.
Conditional Premature withdrawal of deposit permitted.
Loans up to maximum of 75% of the deposit available.
Nomination facility available.
No tax deducted for the interest on the deposit.
Conditional conversion to Term Deposits is permitted (Cir 187/2006/BC)

ix) SYND CORPORATE SUVIDHA DEPOSIT SCHEME

Features of the scheme are as follows :
Amount of deposit: The minimum quantum of deposit under the scheme is fixed at ` 500 lacs
and thereafter in multiples of ` 100 lac.
Period of Deposit: 7 days to 180 days.
Rate of Interest: As applicable to other domestic term deposits.
Payment of Interest: Simple interest is payable at quarterly intervals at the contracted rate.
Premature withdrawal in multiple of ` 100 lac permitted subject to one day notice. However
minimum balances of ` 5 crores should be retained after such partial withdrawal.
There is no restriction regarding frequency and number of withdrawals.
No penalty is to be charged on partial withdrawals. Interest payable on such portion shall be the
interest applicable at the time of accepting the deposit for the period the amount remained with
the Bank.
LD can be arranged only on the balance amount held with the Bank.
Reference Circular No. 48/2004

x) FLOATING RATE DEPOSIT SCHEME:

Minimum Amount is ` 100 lacs & in multiples of ` 1 lac. No maximum amount.
Period one year
Payment of Interest Quarterly
Rate of Interest Bench mark rate + spread of 0.25%
Rate of interest will be revised / reset at quarterly intervals on 1 st day of calendar quarter.
Bench mark rate will be limited to average yield of 91 days Treasury Bill in primary auction
during preceding quarter.
xi) CAPITAL GAIN ACCOUNT SCHEME 1988
Accepted in all branches except Rural Branches.
By depositing amount under this scheme tax payer can avail of the benefits of exemption from
Capital gains.
Account can be opened in the form of Savings Bank Deposit or Term Deposit (FD or VCC)
Rate of interest As applicable to general category of accounts (Domestic)
Opening / operations in the accounts are subject to rules framed by Income Tax Authorities.
Nomination facility is available.
xii) NON RESIDENT (EXTERNAL) RUPEE ACCOUNT (NRE A/Cs)
Scheme for individual NRIs for placing their savings.
A/c can be maintained as SB or Term deposit.
Funds are repatriable along with interest.
Credit can exclusively be from:
Foreign remittances/ Travelers cheques/ Foreign currencies or Proceeds of NRE Term deposit,
FCNR (B) deposits or proceeds of certain other investment made out of NRE remittances.
49

 Joint accounts with resident close as defined in Sec 6 of the Companies Act 1956 permitted
with operating instructions former or survivor
Term Deposit Min. 1 year and Max. 10 years
Loan against Term deposit can be availed.
Balances in the NRE/FCNR account in the name of eligible person standing to his/her credit at
the time of his arrival in India . No penalty would be payable for premature withdrawal of
NRE/FCNR deposits in such cases for investment in Resident Foreign Currency (RFC) account.
Auto renewals are permitted if so instructed by the depositor till rescinded.
xiii) FOREIGN CURRENCY NON-RESIDENTS ACCOUNT (FCNR (B) A/Cs)
A/c can be opened with foreign remittances or Proceeds of NRE A/cs.
Funds are fully repatriable.
The Designated currencies are US Dollars (USD), Great Britain Pounds (GBP), EURO,
Canadian Dollars (CAD) and Australian Dollars (AUD).
Presently, FCNR (B) deposits in all the five currencies [EURO, GBP, CAD & AUD & USD]
are permitted to be accepted for the tenor ranging from 1 year to 5 years.
FCNR term deposits are auto renewed under the same terms and conditions.
Loans permitted against these deposits in both Indian as well as foreign currency.

50

III. PARA BANKING PRODUCTS

1. LIFE INSURANCE
(Cir No 286/2013 BC, 336/2013 BC & 66/2014 BC)
Bank has entered into an MOU with LIC of India on 27.6.2013, as its Corporate Agent for selling life
insurance products through its Branch Network. This tie-up will provide a comprehensive insurance
option to our valued customers. LIC of India, offer spectrum of policies covering every segment of the
society.
Few of the Policies are as follows:
Plan Name
Type of Plan
LICs New
Endowment
Plan

Endowment

LIC's New
Jeevan Anand
Plan

Endowment +
Whole of Life

LIC's Single
Premium
Endowment
Plan

Endowment

LIC's New
Money Back
Plan-20 years

Money Back

LIC's New
Money Back
Plan-25 years

Money Back

LIC's New
Bima Bachat

Money Back

Features
LIC's New Endowment Plan is a participating non-linked plan
which offers an attractive combination of protection and
saving features. This combination provides financial support
for the family of the deceased policyholder any time before
maturity and good lump sum amount at the time of maturity
for the surviving policyholders.
LIC's New Jeevan Anand Plan is a participating non-linked
plan which offers an attractive combination of protection and
savings. This combination provides financial protection
against death throughout the lifetime of the policyholder with
the provision of payment of lumpsum at the end of the
selected policy term in case of his/her survival.
LIC's Single Premium Endowment Plan is a participating nonlinked savings cum protection plan, where premium is paid in
lump sum at the outset of the policy. This combination
provides financial protection against death during the policy
term with the provision of payment of lumpsum at the end of
the selected policy term in case of his/her survival.
LIC's New Money Back Plan-20 years is a participating nonlinked plan which offers an attractive combination of
protection against death throughout the term of the plan along
with the periodic payment on survival at specified durations
during the term. This unique combination provides financial
support for the family of the deceased policyholder any time
before maturity and lump sum amount at the time of maturity
for the surviving policyholders.
LIC's New Money Back Plan-25 years is a participating nonlinked plan which offers an attractive combination of
protection against death throughout the term of the plan along
with the periodic payment on survival at specified durations
during the term. This unique combination provides financial
support for the family of the deceased policyholder any time
before maturity and lump sum amount at the time of maturity
for the surviving policyholders.
LIC's New Bima Bachat is a participating non-linked savings
cum protection plan, where premium is paid in lump sum at
the outset of the policy. It is a money-back plan which
provides financial protection against death during the policy
term with the provision of payment of survival benefits at
specified durations during the policy term. In addition, on
maturity, the single premium shall be returned along with
51

Loyalty Addition,

LICs Anmol
Jeevan - II
LIC's Amulya
Jeevan - II

Jeevan Akshay
6

LICs Anmol Jeevan - II is a protection plan which provides

Pure Risk/
financial protection to the insureds family in case of his/her
Term Insurance
unfortunate demise. Maturity Benefit: Nil
LIC's Amulya Jeevan - II is a protection plan which provides
Pure Risk/
financial protection to the insured's family in case of his/her
Term Insurance
unfortunate demise. Maturity Benefit: Nil
It is an Immediate Annuity plan, which can be purchased by
paying a lump sum amount. The plan provides for annuity
Pension Plan
payments of a stated amount throughout the life time of the
annuitant. Various options are available for the type and mode
of payment of annuities.

More details of the plans are available on Circular No. 66-2104-BS-MKTG-08 dated 22.02.2014 & on on
LIC Website (www.licindia.in).
The above plans are subject to change by IRDA from time to time. In due course, other products/ plans
related to Life Insurance shall be added by LIC of India.
2.GENERAL INSURANCE
Cir No 115/2004 BC & 114/2005 BC
Corporate Agency arrangement with United India Insurance Co Ltd (UIICO) since 2004
UIICO branches Pan India are mapped to Syndicate Bank Branches
Policies issued /renewed & claims settled at local Branches of UIICO
Following are the products offered through Corporate Agency

2
3
4

Fire/Stock/ Machinery/Building /All types

of Vehicles
Shop keepers Insurance & Burglary
Insurance against Electronic equipments
Uni-Home Care

Uni-Study Care policy

6
7
8

SyndArogya Mediclaim Policy

Griha Raksha
Overseas Mediclaim policy

Assets charged to the Bank have to insured

with a General Insurance Company.
Borrowers may be persuaded to obtain
insurance cover through UIICO, thus Bank
earning handsome commission.
All SyndVidya borrowers may be persuaded
to obtain the Policy.
Cross selling to customers of the Bank

A) UNI-HOME CARE POLICY (Cir No 125/04 BC, 158/04 BC, 173/05 BC & 108/06 BC)
a) Provides insurance cover for risks up to ` 50.00 lacs against fire and allied perils covering
lightning, explosion/ implosion, air craft damage etc. to the building, the borrower against death
or injury due to accident to the extent of insured amount.
b) Insurance cover for more than ` 50.00 lacs may be obtained with specific request
c) Riot, Strike, Malicious and Terrorism damages are covered at extra premium.
d) Sum Insured: The borrower can obtain insurance cover for the value of the building excluding
site value or outstanding balance in his loan account, whichever is higher, if the loan is for land
& building.
e) Premium: One time single premium for the tenure of the loan to be borne by the borrower.
Insurance premium can be loaded in project cost for the loan.
52

f) Joint Borrowers: In case of housing loan availed by more than one borrower, the sum insured
available under the personal accident shall be distributed among the borrowers as per the liability
fixed by the Bank. In such cases, names of all the borrowers are to be mentioned in the schedule of
the policy with appropriate sum insured against each person for Personal Accident cover.
Branches can apportion the loan amount to the joint borrowers or split the total amount of loan
between the joint borrowers equally. Further, if branch wants the Personal Accident cover to be
given to one or more key borrowers who are the earning members by excluding other joint
borrowers, it can be done. The Branches shall ensure that total sum insured for all the joint
borrowers is equal to the original loan amount sanctioned or the present balance outstanding in the
case of existing loan accounts.
B) UNI-STUDY CARE POLICY: (Cir No 170/2008 BC)
a) Provides Personal accident Insurance cover to SyndVidya borrowers and parent/s / Guardians
b) As per IBA guidelines, all SyndVidya borrowers who have taken loan after 24.07.2008 are to be
insured along with Parent/s / Guardians. Option may be offered to the borrowers to obtain Personal
accident Insurance under Uni-Study care Policy of UIICO or Life Insurance cover under
SyndVidya MET Flexi Shield Plan from PNB-MET Life Insurance Co Ltd.
c) Premiums have to be remitted to A/c No.04241010003960 of UIICO, Bangalore and proposal
form in Annexure 3 to Cir No 170/2008 BC (Modify the address) to: The Divisional Manager,
United India Insurance Company Ltd, Bancassurance Division, 2nd Floor, Indian Mutual Building ,
NR Square, BANGALORE-560002, Karnataka
d) Issue of Policies and Death Claim settlements will be done by the above office of UIICO.
C) SYND AROGYA FAMILY FLOATER HEALTH INSURANCE PLAN:
Cir No 8/05 BC, 11/06 BC, 91/06 BC, 101/07 BC & 139/08 BC
Product Features:
a) Mediclaim cum Personal Accident policy, with family floater advantage.
b) Mediclaim cover: Minimum ` 50, 000/- maximum up to ` 5.00 lacs.
c) No medical checkup required, but self declaration to be made.
d) Plan A family size 1+3 (Account holder + spouse + Two dependent Children)
Plan B family size 1+5, (Dependent parents are also covered)
e) All account holders with family members, from 3 months to 65 years of age (entry age) are
eligible for coverage.
f) The Policy can be renewed up to 80 years of age if renewed continuously without break
g) Medical checkup reimbursement can be availed after 3 claims free years, up to 1% of average
sum insured.
h) Premium exempted under section 80(D) of Income Tax Act
i) Personal Accident Insurance claim: 100% sum assured for self, 50% for spouse, 20% for
children above 5 Yrs. of age & 10% in case of children below 5 Yrs. of age. Dependent parents
are not eligible for PA benefit.
Reimbursement of 50% of the premium paid by the employees / ex-employees of the Bank on the
policies taken in their names for insured amount up-to ` 1,00,000/- by HO SWD. (Cir No 3/2010 BC &
22/2011 BC)

53

3. GROUP TERM LIFE INSURANCE COVER OFFERED BY THE BANK

a) SYNDSURAKSHA: (Basic circular 25/2008/ BC. Latest Circular 16/2014 BC)

Group Life Insurance Cover provided through LIC of India. The scheme is optional.
Offered to our Savings Bank account holders (optional).
Age 18 years and not over 59 years are eligible under the cover.
No Medical checkup, Low on Premium & High on benefits
The sum assured is ` 1,00,000/- in case of normal death and ` 2,00,000/- in case of accidental death.
Common date of renewal of all memberships will be on 10 th January every year. Renewal premiums debited by
Corporate Office Insurance Division for all eligible enrolled members during the previous year (Branches should
not debit renewal premiums)
Death Claims settled by LIC of India on submission of claim form to Corporate Office, Insurance Division, as
Annexure V part A & Part B of Cir No 25/2008 BC by the Branch along with Death Certificate (original or
certified copy), attested copy of enrollment form & statement of account showing debit of premium to the
account, prior to the death of the insured person.
Branches should collect only the applicable premium and no other charges
Revised premium rates are as below. (Cir No 14/2013 BC).

Month of joining
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
18 to 35 years 165 151
138 124
110
96
83
69
55
41
28
14
36 to 45 years 235 215
196 176
157 137 118
98
78
59
39
20
46 to 55 years 585 536
488 439
390 341 293
244 195 146
98
49
56 to 59 years 875 802
729 656
583 510 438
365 292 219
146
73
b) TATA AIA Total Suraksha Plan(For Housing loan borrowers): Basic Circular No 277/11 BC:
Latest Circular 339/13BC)
Age Band

a) Group Life Cover provided byTATA- AIA to the lives of Housing Loan borrowers
b) Eligibility: Housing loan borrowers and/or co-borrowers/guarantors of the bank aged 18 to 55 years are
eligible. The scheme is optional.
c) Premium: One time premium for the entire period of loan. Premium rates depend upon the age of the
borrower/guarantor.
d) Maturity value: Nil, as this is pure term policy, there will not be any maturity value.
e) Life Insurance cover: Balance in Housing loan a/c of the insured person calculated on reducing balance
system.

c) SYNDVIDYA PNB-MET FLEXI SHIELD: EDUCATION LOAN PROTECTOR:

Basic Circular No 37/2012 Latest Circular 18/2014 BC
a) Group Life Cover provided to Education Loan Borrowers through PNB MET Life Insurance Co Ltd
b) Eligibility: Students aged from 16 to 60 years, who have borrowed SyndVidya loans from the Bank &the
parents/guardians, who are co-borrowers aged up to 60 years are eligible. The scheme is optional.
c) Premium: One time premium for the entire period of loan. Premium rates depend upon age of the borrower /
co-borrower / guarantor.
d) Maturity value: Nil; as this is pure term policy, there will not be any maturity value
e) Life Insurance cover:
Balance in Education loan a/c of the insured person calculated on the reducing
balance system.

d)MICRO INSURANCE
Basic Circular No 292/2011 BC Latest Circular 17/2014 BC
a) Group Life Cover provided to Financial Inclusion Customers presently through - Birla Sun Life Insurance Co
Ltd
b) Eligibility: All SB accounts opened under Banks Financial inclusion Plan under specified products like 221,
224, 225 etc.
c) Premium: Rs 15/- Per Annum
d) Life Insurance cover: Rs 25000/- payable to the nominee on death of the insured member. Insurance cover
starts from the date of debit of premium to the account of the member. The scheme is optional.
Maturity value: Nil: as this is pure term policy, there will not be any maturity value.

54

4. MUTUAL FUNDS:
Bank has signed MOU with following Nine AMCs, for distribution of their Mutual Fund Products,
through our Branches.
ICICI Prudential Asset management Co Ltd.
Reliance Capital Asset Management Co Ltd.
Birla Sunlife Asset Management Co Ltd.
HDFC Asset Management Co Ltd.
UTI Asset Management Co Ltd.
SBI Asset Management Co Ltd.
DSP BlackRock Investment Managers Pvt Ltd.
IDBI Asset Management Co Ltd.
Franklin Templeton Asset Management (India) Pvt Ltd.
Reference Circular No. 204-2012, 327-2012
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal.
a) Advantages OF MUTUAL FUND Investment

Professional Management
Diversification
Convenient Administration
Return Potential
Low Costs
Liquidity
Transparency
Flexibility
Choice of schemes
Tax benefits
Well regulated

B) Types of Mutual Funds:

a) On the Basis of Scheme Structure:
Open Ended Schemes
Are always open to investors.
Can buy or sell units on a continuous basis
Close Ended Schemes
Have a lock in period.
May vary from 3 5 years, depending on scheme objective.
b) On the Basis of Asset Class in which the scheme invest
Equity Schemes: Equity Schemes primarily invests in shares. Suitable For Long Term
Investment
Can focus on individual sector or diversify across the sector
55

Certain Scheme Can Help Save Tax

Certain Scheme Invest In Global Markets

Debt Schemes: Aim To Add Stability To Your Equity Portfolio & Can Provide Stable
Returns.
Invest in interest bearing securities like Govt. & corporate bonds, money market
instruments & term deposits.
Some scheme provides easy liquidity suitable to park surplus cash for short term.
Some schemes provide investment opportunities across different time periods.
Some schemes try to benefit from changing interest rates.

Hybrid schemes: provide blend of both equity & debt ( Balance Fund or Monthly Income
Plans)
Invest in range of securities like stocks & bonds, depending upon the scheme objective
There are also schemes that allows you to invest in gold units.
C) Systematic Investment Plan (SIP) & Its Advantage:
SIP is a convenient way to accumulate wealth in a disciplined manner over a long-term period. It helps
you to invest fixed amount regularly in small installments and thereby build wealth over a period of
time.
Power of Compounding
Rupee Cost Averaging
Convenience and Regularity Pay through ECS / Auto Debit / Standing Instructions
Disciplined approach towards investment ]
D) ELSS (Equity Linked Savings Scheme) & its Advantages

Invests in
Section 80 C
Lock in Period
Returns
Dividend
Tax Liability
SIP

:
:
:
:
:
:
:

Equity and equity related securities.

Tax benefits on investment up to ` 1.00 Lacs.
3 years ( Lowest in all Tax Saving Instruments)
High Potential
Tax Free
Nil as redemption happens after 3 Years.
Flexibility to invest in small amounts through SIP

5. CASH MANAGEMENT SERVICES AND CAPITAL MARKET SERVICES PRODUCTS:

A) CASH MANAGEMENT SERVICES: Bank offers a range of Products and Services, as stated
below, to meet Cash Management Services requirements of Corporates, either directly or through their
Bankers:
Sl.
Product /
Features
No
Services
Centralized
Cheques issued in favour of Corporate drawn on various branches of our
1
Cheque
Bank will be centrally processed
Processing
Cash
Small Value cash deposits by customers of corporate clients at various
2
Collection
branches across the country, into the current account of the Corporate.
Direct Debits
This facility meets the small value bulk, recurring collections through
3
based on
mandates of customers of corporate clients who have bank account with
56

Mandate

DD/DW
Drawing
Arrangement

Bulk NEFT
Payments

Remote
Demand Draft
Printing
Direct Credit
by Fund
Transfer

Syndicate Bank. Mandates are centrally processed and registered.

Transactions are processed periodically on the basis of registered mandates.
Demand Drafts / Payable AT PAR cheques issued by the CMS Clients
(Corporate and Correspondent Bank). The DD issuance data is uploaded
centrally in CBS and instruments paid by branches using DW module in
CBS
Electronic Channels to meet high value, small value bulk disbursements.
This meets the corporate payment requirements such as statutory payments,
salary disbursements, all other remittances etc. Single amount funding
received from the Corporates for credit to various beneficiaries having
accounts in various bank branches across the country.
Pre-funding is done by the corporate clients, with advise to issue Demand
Draft to a specified entity by any of our remote branches
This offers the management of payables centrally in respect of supply chain
payments, overseas remittances, salary payments, statutory payments where
beneficiaries happen to be our existing account holders

B) CAPITAL MARKET SERVICES: The following activities are conducted under Capital Market
Services:
1. Merchant Bankers
2. Bankers to an Issue
3. Depository Participant Services
4. Debenture Trustee
I. MERCHANT BANKING:
Category I Merchant Banker, as per SEBI certificate of registration, is permitted:
1. To carry on any activity of the Issue Management, which will, inter-alia, consist of preparation of
prospectus and other information relating to the issue, determining financial structure, tie-up of
financiers, final allotment and refund of excess application money.
2. To act as Investment Adviser.
3. To act as Manager, Consultant or Advisor to any Issue, including Corporate Advisory Services.
4. To act as Consultant or Advisor.
II. BANKERS TO AN ISSUE:

Banker to an issue means carrying on all or any of the following activities:

Acceptance of application and application monies
Acceptance of allotment or call monies
Refund of application monies
Payment of dividend or interest warrants

Bank may carry on the activity of Banker to Issue based on the existing relationship with the body
corporate, the arrangement of funding, amount & duration of float available and the avenues for
deployment of such ultra short tenor funds, the number of location the services will be required, the
income to be generated etc. Bank may also carry on the activity on behalf of a scheduled commercial
bank, which is holding a valid certificate from SEBI to act as Bankers to an Issue.
Application Supported by Blocked Amount (ASBA)
ASBA (Applications Supported by Blocked Amount) is a Simple, Safe and Smart way for customers to
apply in an eligible Initial Public Offer / Follow on Public Offer / Rights Issue. All branches of our
Bank are enabled for offering ASBA facility to our CASA customers.
Eligibility Conditions for investor through ASBA:
57

Investor should maintain a Savings Bank or Current Account with any branch of
SyndicateBank:
Investor should have Demat account with any of the Depository Participant (DP)
Investor should have Permanent Account Number (PAN).
Investor should have sufficient clear credit balance in the Savings Bank or Current account
for application money.
Multiple ASBA applications by a single investor are not allowed whereas an Investor can make 5
applications from a single bank account in the name of different persons. (Detailed BC Circular No.
358-2011-BC-MKTG-12)
ASBA - Guidelines regarding processing of ASBA applications received at our branches:
Branch shall have at least one Supervisor and one Teller user IDs created for assessing ASBA
application. The user access rights form is available at \\172.18.200.222\d$\ASBA folder. The same
has to be filled in and sent to CMS Branch, Mumbai by fax/scanned copy by IP for user creation.
ASBA login page can be accessed at the following URL on the network in the CBS node:
http://172.16.1.32:9081/asbaWeb/
III. DEPOSITORY PARTICIPANT SERVICES:
(i) Demat Services
Bank offers Demat services from January 16, 2008 with Central Depository Services (India)
Limited (CDSL)
61 Branches across country enabled for Demat Services under centralized operations
Demat Account opening
Dematerialization of Physical Securities
Off Market and Inter Depository Transfer of Securities
Transmission of Securities
Pledge / Un-pledging
Re-materialization / Redemption of Electronic Holdings
KYC updating with KRA
(Detailed BC Circular No. 103-2012-BC-MKTG-02)
(ii) Synd e-Trade (On-Line-Trading facility with Three-in-one Account)
Bank has tied up with one among the leading stock broking players in India M/s Asit C Mehta
Investment Interrmediates Ltd (ACMIIL) for offering Synd e-Trade - Online Share Trading
Facility (3 in 1 Account) to SyndicateBank customers who invest or trade in securities.
Resident Individuals can buy/sell equity shares through NSE/BSE, on an online basis using
Synd e-Trade link on Banks website www.syndicatebank.in
Customers should have following three accounts for Synd e-Trade facility:
Current or Savings account with any branch of SyndicateBank
Demat account with SyndicateBank
Online trading account with Broker partner. I.e. M/s Asit C Mehta Investment
Interrmediates Ltd (ACMIIL).
Above three accounts will be integrated under 3 in 1 facility. Process is fully automated wherein Bank
CBS systems and Bank Demat systems are integrated with Broker Systems.
Detailed BC Circular No: 1) 103-2012-BC-MKTG-02
2) 355-2011-BC-MKTG-11
IV. DEBENTURE TRUSTEE:
Debenture Trustee provides services with regard to Trusteeship business as:
Debenture/ Bond Trustee
Security Trustee
Share Trustee
58

In terms of SEBI guidelines, all Debenture Issues (Public/ Rights) of the Companies with the maturity
period exceeding 18 months are required to have Debenture Trustee and its name must be stated in
the Prospectus of the Issue. A Debenture Trustee is appointed to represent and protect the interests of
Debenture/ Bond holders. The necessity of creation of Debenture Trust is to organize the large number
of Debenture Holders and facilitate interaction by the Companies issuing debentures with a single
entity, rather than individual debenture holders
To act as Debenture Trustee, the entity should either be a scheduled bank carrying on commercial
activity, a public financial institution, an insurance company, or a body corporate. The entity should be
registered with SEBI to act as a debenture trustee
Bank is registered with SEBI for carrying on Debenture Trustee activities and has been granted
Permanent Registration by SEBI vide Registration Number IND000000025 dated 16.11.2011

6. NATIONAL PENSION SYSTEM (NPS)

Bank is registered as a Point of Presence with PFRDA (Pension Fund Regulatory & Development
Authority] under All Citizens of India module of National Pension System.
2052 branches are registered as Point of Presence Service Provider (POP-SP)
Bank is also appointed as Aggregator under NPS
Pension Fund Regulatory and Development Authority (PFRDA) has introduced following two
Schemes:
(i) NPS Regular for the Organised Sector
(ii) NPS lite/ Swavalambhan Scheme for the unorganized Sector.
(Detailed BC Circular No. 265-2013-BC-MKTG-05)

59

IV ALTERNATE DELIVERY CHANNEL

I. SYNDICATE BANK GLOBAL DEBIT CARD,

Syndicate Bank Global Debit Card, packed with RuPay/VISA/Maestro Power, brings the convenience
of accessing the savings /current account ANY TIME ANY WHERE GLOBALLY, in a safe, secured
and convenient way.
Features of the Syndicate Bank Global Debit Card:
Card No
Unique 16-digit card number is printed on the front side.
Name
Validity thru
<Mark on left side
Electronic use only
Black strip outside

Signature panel
CVV No.

The name appears below the number for personalized card only.
This indicates the month and the year up to which the Debit Card would
be valid.
While using card in any ATM, the card is to be inserted in the direction of
this arrow.
The card is acceptable only for on-line transactions through ATMs , EDC
machine at MEs and Internet portals
This is a magnetic strip containing coded information for the security of
card and needs special handling. The card should not be placed in an area,
where there is continuous magnetic field, such as on top of the TV set or
near any electrical appliance.
Paper strip below the magnetic strip for putting the signature. Customers
shall sign immediately on receipt of the card.
To the right of signature panel, 3 digit number, which is to be used for ecommerce transactions along with VbV or Master Secure Password.

Card Activation:
Syndicate Bank Global Debit Card is ready for use at the time of delivery. However, the Instant (Nonpersonalized without the name printed) Card will be activated within two working days after it is
delivered to the customer.
PIN Mailer:
A cover containing sealed and secret 4 digits Personal Identification Number (PIN) generated for card
will be delivered by Branch, to enable access to the account in any ATM/POS.
Usage:
Three accounts with same Customer ID (of same Branch or different branches) is linked to debit
card. However, only Primary Account would be assessed for transactions at other Bank ATMs and
Merchant Establishments (MEs).
Debit Card can be performed up to the available balance in the account at ATMs, and/or MEs,
subject to following limits (or equivalent foreign currency abroad.)
Transaction
Minimum amount per transaction `
Maximum amount per transaction `
Maximum amount per day `

Instant
100
20,000
25,000

Personalised Gold
100
20,000
ATM: 25,000
POS: 75,000

Loss or theft of Card:

In case card is lost/stolen or the card has been unauthorized copied, the same is to be notified with
the Bank Immediately. 24 hour customer service 1800 425 0585/9483522433 to notify the
loss/theft/misuse of the card for blocking further operations may be utilised for this purpose.

60

 Cardholder can notify the loss/theft of card through fax at 080 2663 9970 or e mail at
cardcentre@syndicatebank.co.in or dcc@syndicatebank.co.in (or the Card Issuing Branch during
office hours only). The card will be hot listed, after verification, to prevent any further misuse.
Schedule of charges:
Sl. No Activity

Charges for Charges

for
Instant
Gold
Cards
personalised
Cards
Nil
` 250 + ST
100+ST
` 250 + ST
Nil
` 250 + ST
Nil
Per transaction
` 20/` 125/-+ST

01
02
03
04
05*

Entry fee for issue of new card

Annual/Renewal fees per card
Entry/Annual fee for add-on cards
Transaction charges at our ATMs
Cash withdrawal charges at other Bank
a. ATMs in India
b. ATMs outside India

06*
07*
08
09
10

Balance inquiry - ATMs of other Banks in India

Balance inquiry - Network ATMs outside India
Currency conversion charges for International Txns
Transaction at petrol pumps payable to Acquiring
Bank
Transaction for Railway Reservation/ cancellation etc.

11
12
13

Issue of Replacement card- lost/mutilated card

Issue of Re-pin of Debit card
Charge slip retrieval charges

` 10/` 30/-+ ST
2% of the amount of Txn
2.5% of the amount (Minimum `
10/-)
As claimed by Acquirer Bank +
surcharge
` 100/-* _ ST
` 50/-* + ST
` 100/-*+ST

*The first five financial and non-financial transactions in other Banks ATMs are free of charges every
Month for our SB account holders. The sixth transaction will be charged as per SL. No. 05 to 07.
Important Circulars:
Sl
No

Circular No

Date

Subject

312/2011/BC/MKT

15.11.2011

Syndicate Bank Global Debit Cards

61

II. SYNDICATE BANK GLOBAL CREDIT CARD (SBGCC)

Our Bank launched Syndicate Bank Global Credit Cards on 20.10.2003 in association with VISA,
having following variants and features:
01. SALIENT FEATURES
VARIANTS

VISA CLASSIC & GOLD CARD

Add On Cards

Any number of Add-on Cards can be obtained in the names of

immediate major family members. However, the liability under all these
cards shall not exceed the credit limit sanctioned for the Primary Card.

Free Credit

20 - 50 days (If last bill is paid in full & there is no cash withdrawal
during billing cycle)

Revolving Credit Facility

With Minimum Payment of 10% for Public & 20% for Staff or ` 100/-,
whichever is higher

Reward Points

1 point - for every ` 200 spend for public; ` 100 for staff

Redemption of Reward
Points

Encashment by credit to Credit Card a/c in multiples of 500 points

Late Payment Fee

` 200/- for relevant month

Acceptability

Both On-line & Off-line

MCC Limits

Internal security limits to minimize misuse, if card is lost. The limit can
be got removed for any specific transaction/ period or permanently at
the written request of Card Holder

Usage at/ thro

ATMs, POS, e-commerce

Billing Date

20th of every month

Payment Due Date

10th of succeeding month.

Immediate in case of previous months default

Card Blocking

For continuous default for 2 billing cycles. Auto activation on payment

of overdues before next Billing Statement

Card Hotlisting

For continuous default for 3 billing cycles

02. SCHEDULE OF CHARGES

ENTRANCE & RENEWAL FEES (AMOUNT IN `)
Classic Card
Gold Card
Fee Structure
Primary
Add On
Primary
Add On
Entrance Fee
NIL
NIL
NIL
NIL
Renewal Fee
300
150
500
250
The Renewal Fee shall be levied in advance to the Credit Cardholders account in the anniversary
month of issue of the card, if the card becomes irregular/ overdue due to non-payment. No separate
notices are issued in this regard.
DESCRIPTION OF CHARGES
If Total Payment (TPD) is paid
NIL
within Payment Due Date (PDD)
62

If Minimum Payment Due (MPD)

2.00% p.m. (24.00% p.a. calculated monthly) for all
is paid within PDD
transactions from date of each transaction
If no amount or less than MPD is paid
2.50% p.m. (30.00% p.a. calculated monthly) for all
within PDD
transactions from the date of transaction
Cash advance (withdrawal) fee
SyndicateBanks ATMs
2% on advance amount (Minimum: ` 50/-per
transaction) + Finance (Service) Charges as detailed
above
Other Banks ATMs in India
2.5% on advance amount (Minimum: ` 100/- per
transaction)+Finance (Service) Charges as detailed
above
ATMs outside India
2.5% on advance amount (Minimum: ` 200/- per
transaction)+Finance (Service) Charges as detailed
above
OTHER FEES
Mark Up Fee on Intl Transactions
3% of the transaction amount + Service Tax
Over the Credit Limit Usage,
` 100/- for each occasion
when o/s exceeds credit limit
Balance Enquiry Charges at ATMs under ` 15/- + Service Tax
VISA network in India
Balance Enquiry Charges at ATMs under ` 30/- + Service Tax
VISA network outside India
Limit Enhancement Charges
` 200/- for each occasion
Retrieval of Charge Slip
` 150/- or actual charges, whichever is higher
Cheque Bouncing Charges
` 200/- per instrument
Late Payment Fee if MPD is not
` 200/- for each month
paid by PDD
Transactions at Petrol Pumps
2.50% of transaction amount (Minimum ` 10/-) or
Actual charges claimed by Acquirer Bank
Replacement Card issue charges
in case of lost, stolen or damaged` 100/in case of hot listed Cards due to default
in payment` 200/PIN Replacement
` 50/Duplicate Billing Statement
` 50/beyond three months
Service Tax
As applicable
04. ROUND THE CLOCK FRIENDLY HELP LINE:
A 24 Hour Customer Friendly Help Line [Toll Free # 1800 22 5092 OR STD # 022-4042 6003
(chargeable to Caller)] for direct interaction with the Call Centre Executives at the convenience of the
Cardholders. The Caller is identified through dynamic quizzing, before providing any information.
05. SOME IMPORTANT TIPS:
LOSS/ THEFT OF CARDS: Get your Credit Card hotlisted immediately in case of loss/ theft
through our 24 Hour Help Line to prevent any misuse. We recommend our Cardholders to file a
police complaint in their own interest immediately after the Credit Card is lost, which would be
required in case of misuse of such cards. However, the cardholder has the option of seeking
replacement card in case of lost/stolen card without filing of police complaint with a clear
undertaking that the Cardholder would be liable for any misuse of lost/stolen card till the
loss/theft is notified to the Bank.
63

CHANGE IN MAILING ADDRESS: Intimate the change in your mailing address, phone
numbers, mobile number, e-mail address by contacting Helpline Number or to Card Centre in
writing.
CONSEQUENCES OF NON PAYMENT:
Non-payment of Minimum Payment Due by Payment Due Date attracts higher finance
charges at 2.50% p.m. (30.00% p.a.) calculated on monthly basis for all the transactions from
the date of each transaction.
Non-payment of Minimum Payment Due amount for two billing cycles leads to temporary
suspension (card blocking) of your card(s) operations.
Non-payment of Minimum Payment Due amount for three billing cycles leads to
HOTLISTING of Card(s).
GRIEVANCE REDRESSAL: The Cardholder, if not satisfied with the response received on
the enquiries, can address the grievance for redressal (by intimating contact number & e-mail id,
if any) toAssistant General Manager
SyndicateBank: Corporate Office : Card Centre
No. 69, I floor, 9thMain Road, Jayanagar 3rdBlock
Bangalore - 560011 (INDIA)
E-mail: cardcentre@syndicatebank.co.in
Phones: 080-2663 9960; Fax: 2663 9970
Important Circulars:
Sl
Circular No
Date
Subject
No
01
006/2005/BC/CCC
12.01.2005
SBGCC master circular
02 222/2005/BC/CRD
01.12.2005
Transfer of NPAs to branches
03 253/2005/BC/CRD
31.12.2005
Modifications
04 071/2006/BC/CRD
15.04.2006
Modifications/ Clarifications
05 136/2006/BC/CRD
24.06.2006
Improving card base
06 140/2006/BC/CRD
28.06.2006
settlement policy for credit card dues
07 231/2006/BC/CRD
11.10.2006
Designation of all branches to issue Cards
08 237/2006/BC/CRD
23.10.2006
withdrawal of free personnel accident cover
09 027/2007/BC/RBD
27.01.2007
modification / improvement
10 238/2007/BC/RBD
25.10.2007
Cash back promotion for flights/Hotel Booking
11 122/2008/BC/RBD
28.05.2008
Payment of dues through internet banking
12
176/2008/BC/DIT
31.07.2008
Maintenance of Credit Card NPAs in CBS
13 217/2008/BC/RBD
02.09.2008
modification / improvement
14 191/2011/BC/MKT
11.07.2011
Recovery Policy for Credit Card NPAs

III. POS ACQUIRING BUSINESS

POS-(EDC) [Point of Sale-(Electronic Data Capture)] acquiring activity involves deploying Point of
Sale terminals at Merchant Establishments for accepting Debit Cards/Credit Cards/Pre-paid
Cards/Charge Cards by Merchant Establishments towards payment of goods and services. The Merchant
acquiring business though POS installation is a successful channel of earning non-interest income, with
very high scope of canvassing other Banking products for the Banks that not only prevents customer(
both current account holders as well as floating customers) attrition to other Banks.
The Merchant acquiring activity through POS (EDC) rests on the principle of Merchant Discount Rate
(MDR) [also known as Merchant Service Fee (MSF) or Merchant Service Charge (MSC)] to be charged
to the Merchant Establishments depending on the transaction value and monthly business turnover for
the services rendered. A share of fixed percentage of the Merchant discount rate (MDR/MSF/MSC)
64

charged to the Merchant Establishment needs to be shared with the Card-issuing Bank whose Cards are
swiped on our Banks POS-(EDC) terminals deployed at the Merchant Establishments depending on the
type of the Card from the issuer known as interchange. The higher the brand name (Platinum/ Global
platinum/ premium gold etc.) the higher is the interchange.
Procedure for deploying of EDC terminals:
01. The Branches shall obtain request of the Merchant desirous of having POS-EDC terminal in the
Merchant Enrolment Form (MEF) and forward the same to Card Centre with Branch
recommendations.
02. Where the Merchant /customer are not fulfilling the eligibility criteria, the request has to be
recommended by respective Regional Office and forwarded to Card Centre.
03. On receipt of the format,( Merchant Establishment Application form) Card Centre will verify the
credentials to determine the MDR eligibility recommended by the branch as per BC circular-298/13,
based on the details furnished in the Merchant Enrolment Form. On approval/sanction of the
enrollment of the Merchant Establishment on the recommended MDR, the Branch is informed for
executing the agreement in the format mentioned in Annexure III of the circular 246/2010/BC and
installation & training of POS (EDC) is undertaken at the Merchant Establishment outlet..
04. The Original of the agreement should be retained at Branch level under joint custody and Xerox
copy of the same duly certified by the Branch Head on all pages should be forwarded to Card
Centre, Bangalore.
05. The Bank is presently having arrangements with M/s BTI Payments Pvt. Ltd for deployment /
managing POS machine on Fixed Rental Model (OPEX model) in terms of Agreement dated
25/11/2013.
Process of settlement of Funds & MIS to Merchant:
The transactions made by the Merchant through the POS-EDC terminal should be completed by a
process known as Batch closing at the end of the day on a daily basis. All the transactions amount done
prior to settlement of batch at the close of the business at the M.E. outlet will be settled/paid the next
day only if the Merchants close the days Batch and transactions are found to be in order. The credits are
settled on next working day and the Merchant Establishment account is credited centrally from Card
Centre through GEFU upload.
The daily transaction details with the net amount settled to the Merchants account is sent by email to the
email-id provided by the Merchant if the transactions done are found to be in order after risk mitigation
on the transaction analysis.
MDR ON DEBIT CARDS SHALL BE CHARGED AS MANDATED BY RBI, AS UNDER
CRITERION MDR / MSF
Fee (%)
0.75
1. Debit Card Transaction up to ` 2,000/1.00
2. Debit Card Transaction above ` 2,000/Merchant Discount Rates - Floor Limits for Credit Cards
Existing MDR Rates (Excl. Taxes)
Revised MDR Rates (Excl. Taxes)
Average
monthly Minimum MDR (%)
turnover(` lacs)
Customers
Non customers
50 & above
1.25
1.50
35 to < 50
1.30
1.75
20 to < 35
1.40
16 to < 20
1.50
2.00
12 to < 16
1.60
11 to < 12
1.65
8 to < 11
1.70
2.25
65

Average monthly Minimum MDR

turnover(` lacs) %
Common for all
50 & above
1.25
35 to < 50
1.30
20 to < 35
1.40
12 to < 20
1.50
5 to 12
1.75
2 to < 5
2.00
<2
2.25

5 to < 8
3 to < 5
2 to < 3
Minimum monthly
charge # (`)

2.00
2.25
2.50
600

3.00

Minimum
PSTN 600
monthly charge # GRPS 1200
In store- 1500
(`)
# If ME fails to achieve minimum assured turnover through our POS, Bank will recover Minimum
Monthly Charges for respective terminal minus monthly income earned through POS Terminal.
Following Powers have been delegated for further reduction in MDR on merits of each proposal on
the specific recommendation of concerned Field General Manager Offices:
1500

Sanctioning Authority
General Manager in-charge of Card Centre
Executive Director
Chairman & Managing Director

Maximum Reduction in MDR as per

Monthly Turnover Slab.
20% of Card Rate
30% of Card Rate
More than 30% of Card Rate

It is further clarified that all the POS (EDC) terminals deployed by the Bank are capable of accepting all
types of Payment Cards (Credit Cards, Debit Cards, Prepaid Cards, Gift Cards, Petro Cards, etc) issued
by all banks in association with NPCI (RuPay Cards), VISA, MasterCard, Maestro Cards and
DISCOVER Cards.
Arrangement with City Union Bank, Lakshmi Vilas Bank & Dhanalakshmi Bank.
The Bank also has entered into a Tripartite agreement allowing M/s BTI payments Pvt. Ltd. to route
MasterCard transaction of City Union Bank, Lakshmi Vilas Bank and Dhanalakshmi Bank, as they are
not members, which benefits fee income @10 basis points along with fixed rental @ ` 60/- per month
per terminal as additional income to our Bank.
Circulars Issued:
246/2010/-BC-DIT-02 dated 17/09/2010.
298-2013-BC dated 09.11.2013
361/2013/BC dated 26-12-2013
IV. INTERNET BANKING
1. Login Password :
Features:
Branches have been provided pre-printed Instant Login passwords.
The Instant Login
passwords are issued instantaneously to the customer as and when requested. The login
password can be activated within one working day.
Action to be taken by branch :
(i)
To take written request from the customers for issuance of Login Password
(ii)
To verify that the customers details like First name/Last Name (without any special
characters), Mobile no. (prefix with 91 in telex field), Valid Email ID are properly
updated in Customer Master.
(iii)
To enter the password details in Fast Path CIM40 option of the CBS.
(iv)
Once the password details are entered successfully, the said password may be delivered
to the customer and advised him to try to login after one working day.
(v)
If Instant login password stationery is exhausted, the branch may send request to DIT
through Scan copy on node no. 172.18.200.210 or send FAX to 080-25705800.

66

2. RSA SyndProtect Transaction Password :

Features :
(i)

(ii)

RSA SecureID virtual password is a highly secured password and the bank has
launched this product to provide high security to the Internet Banking customers and
also to protect them from any phishing attack.
The customer can opt either for Software token or Hardware token. The Software
token is free of cost whereas the charges fixed by the bank for Hardware token are `

1400.
(iii)
The software token can be issued for Desktop, Laptop, Android Mobile, Winphone,
iphone etc. DIT will send the software token file and installation guide to the customer
directly on their registered email ID. Average time taken by DIT for providing this password is
2 working days.
Action to be taken by branch :
(i)
Take written request from the customer for issuance of Transaction password
(ii)
To verify that the EMail ID updated in the customer master is a valid EMail ID of the
customer or else mail sent by the bank would not reach to the customer.
(iii)
Branch need to enter the necessary details in CIM55 option of the CBS.
Detailed guidelines about SyndProtect SecureID password is available at
\\172.18.200.222\d$\SyndProtect - folder.
3. Fixing of Per day transaction limit :
Features:
The customers need to have per day transaction limits for doing online transactions. The various
types of transaction limits and the default limit amount is
Fund Transfer (Own Accounts) ` 100000/ 3rd Party (Syndicate Bank Accounts) ` 10000/ NEFT (Other bank Accounts ) Nil
Bill Payment ` 25000/These limits are given to the Sole Owner / Proprietorship concern customers at the time of
issuance of Internet Banking Passwords.
Action to be taken by branch :
(i)
If any of the default limit is to be enhanced (upto ` 1.00 lakh), the branches may send
such requests using the URL http://172.18.200.58.
(ii)
If the limit request is more than ` 1.00 lakh, the branches should firstly issue
SyndProtect password to the customer and then send request to DIT with the
recommendation of their RO.

V. SMS BANKING
1. SMS Request Registration :
Features:
The bank is presently providing SMS alert facilities for
(i)
Balance Alerts,
(ii) Debit Alerts,
(iii) Credit Alerts and
(iv) Overdraft Alerts to the customers,
If any customer wish to avail SMS facility and charges of ` 15/- per quarter (in advance) will be
applicable for availing this facility.
67

The customers who have registered for above referred SMS alerts facility, would get the SMS
alerts on following occasions
a. Balance Alert - As and when there is any change in the account balance, the Balance alert
would be sent to the customer on next day morning.
b. Debit / Credit Alerts - As and when there is any transaction (debit or credit) in the account
of ` 10000 or above, respective Debit Alert/ Credit Alert would be sent to the customer
immediately after transaction.
c. Overdraft Alert - As and when the account gets overdrawn, the Overdraft Alert would be
sent to the customer.
Apart from the above, the customer will get transaction alerts irrespective of amount of
transaction, in respect of the following types of transactions, if the mobile no. of the customer
is updated properly in customer master.
a. Amount withdrawn using ATM card.
b. POS transaction done using Debit Card / Credit Card.
Action to be taken by branch :
(i)
Take written request from the customer who wish to have SMS Alerts facility.
(ii) Update mobile no. of the customer in the Telex field of the customer prefix with 91
without any + or -sign or space.
(iii) Enter such requests using the URL http://172.18.200.58. (iv) Once the SMS request is
registered, the customer will start getting SMS alerts from next day onwards as per the
criteria given above.
2. SMS De-Registration Request :
The branches can send SMS De-Registration requests using the URL http://172.18.200.58.
However, since the bank is collecting SMS charges in advance for each of the quarter, such deregistration request would be executed in the last week of the respective quarter.

VI. MISSED CALL BANKING

Features:
Through this facility, the customers can get balance of their CASA account instantaneously on his
registered Mobile No. after making a missed call to 09664552255, provided he has registered
himself for availing Missed Call Banking.
How to avail this facility :
1. Customer should firstly Register himself for Missed Call Banking by sending following SMS to
09664552255 from the Mobile Number available in Banks Core Banking System
SREG <Cust-ID>
2. Customer will get a confirmation Message for the above step
(In the Banks System, the latest CASA Account-No. will be
registered as the Default
Account-No. for Missed Call Banking)
3. Once confirmation is received, Customer can give a call to 09664552255
a. The call made will get automatically cut after one or two rings.
b. Customer will then receive an SMS mentioning the outstanding balance for the Default
Account-No.
4. If the Customer wants to change the Default Account-No., an SMS can be sent to 09664552255
with the below format
SACC <CustID> <Account-No>
68

VII. MOBILE BANKING

1. Introduction to Mobile banking
In addition to existing delivery channels like ATM, Internet Banking, SMS Banking, our Bank
has introduced Mobile banking from 10th May, 2011.
Through Mobile Banking customer can do banking transactions like
Balance Enquiry
viewing mini statement of account
Intra/Inter Bank fund transfer (IMPS)
Cheque book request and
Value added services like Mobile Talktime top up and DTH top up (will be introduced
shortly).
There are 3 types of platforms through which mobile banking can be used. They are
1.SMS/IVR 2. Downloaded Application 3. National Unified USSD (NUUP).
For SMS/IVR mode, any type of mobile handset can be used. For Downloaded Application
mode, customers handset should support JAVA or Android or Windows or Iphone and must
have GPRS settings enabled. Customers who are using BSNL/MTNL SIM can use NUUP
platform.
A list of Java enabled handsets which can be used for downloading Application is kept in our
website (www.syndicatebank.in) for our customer use and also at \\172.18.200.222\d$\mobile
banking folder for our branches use. There is no restriction on type of handset if handset is
running on Android/windows/iOS operating system.
1.1. Difference between SMS Banking and Mobile Banking:
Details
For SMS Banking
For Mobile Banking
Registration
CIM09 ( telex/ handphone field)
CIM78
Screen
Format
for Mobile number to be prefixed Mobile number should not be
entering mobile with 91 if it is a domestic prefixed with 91 or 0 or +.
number
phone.
Example: 911234567890
Only domestic phone numbers are
Mobile number to be prefixed eligible for mobile banking facility.
with 00+country code if it is a
overseas number.
Example: 00+country code +
1234567890
How
many All CASA accounts of the Maximum of Two accounts
accounts can be customer can be given.
provided both the accounts are
linked to same
opened under the same customer
Mobile number
ID. Same mobile number should
not be linked to accounts under
different customer IDs.

2 What is MPIN , MMID and IMPS:

2.1
Mobile Personal Identification Number (MPIN) is a 4 digit number which will be
generated by CO:DIT on successful registration of customer mobile number for mobile
banking. MPIN will be sent to the branch in a sealed MPIN MAILER. Customer needs
to change this MPIN on receipt before using mobile banking for the first time. MPIN is
required to be entered by the customer at the time of initiating each Mobile Banking
transactions.
69

2.2

Mobile Money Identifier (MMID) is a 7 digit number which will be generated by the
mobile banking software on successful registration of customer account. If a customer
has more than one registered accounts for mobile banking, then each account will have
different MMID. To know the MMID, customer should type MMID and send SMS
to 9870900876. System will send a reply SMS containing MMID of all the registered
accounts for the customer.
2.3
Immediate Payment Service (IMPS) is a service provided by National Payments
Corporation of India (NPCI) to facilitate fund transfers across accounts of member
banks through mobile banking. Our Bank has also availed this service to provide our
customers the facility of Inter Bank fund transfer through mobile banking.
VIII. UTILITY BILL PAYMENT/ONLINE SHOPPING
Through our payment gateway arrangement:
Currently, Bank has tie-up arrangement with CC Avenue & Bill Desk (payment gateway service
providers) for online payment of utility bills.
Customers are required to log onto our site www.syndicatebank.in and click on online shopping and
select either CC Avenue or Bill desk and put through their transactions.
Help Desk: 172.18.200.210
IX. FUNDS TRANSFER/REMITTANCE FACILITY: FASTER, SAFE, SECURE & COST
EFFECTIVE
i) National Electronic Funds Transfer (NEFT) System
National Electronic Funds Transfer is a nation wide transfer of funds from any bank branch to any
other bank branch.
The beneficiary gets the credit on the same day or the next day depending on the time of settlement.
FREE (no service charge) for remittances upto ` 1.00 lac
Any amount can be remitted
Help Desk: 172.18.200.74 or 080-25705783.
ii) Real Time Gross Settlement (RTGS System) SYND INSTANT
For transfer of funds on real time basis.
It is a remittance solution offered to both corporate customers and individual customers for transfer
of funds from their accounts to customers of other bank branches, which are RTGS, enabled.
At present customer transaction of ` 2.00 lakh and above are allowed under RTGS.
Help Desk: 172.24.240.42/43 or phone 022- 22653157
iii) e-payment of Advance Tax (online tax payment) is mandatory from 01.04.2008 for

All Corporates

All persons whose accounts are audited u/s 44AB

Pay taxes (Direct & Indirect Taxes) through select Branches as well as On-line

Income Tax

Corporate Tax

Service tax

Commercial Tax for Delhi ( VAT or CST) only On-line. Off-line mode is disabled by the Govt.
Department.

Pay Karnataka VAT and Maharashtra VAT on-line.

To pay online customer have to log onto:www.syndicatebank.in > e-banking > e-payment > pay
direct tax online.
Payment towards Public Provident Fund (PPF): Through Branches (Off-line mode).

70

V. PRIORITY SECTOR ADVANCES:

RETAIL PRODUCTS PSCD

1. SYNDICATE KISAN CREDIT CARD (SKCC)

A single window credit facility for providing adequate and timely credit to farmers for
Purpose
meeting their cultivation and other requirements, as indicated below:
a.
To meet the short term credit requirements for cultivation of crops.
b. Post harvest expenses.
c.
Consumption requirement of farmer household.
d. Working capital requirement for maintenance of farm assets and activities allied to
agriculture, like dairy animals, inland fishery etc.,
Eligibility I. All farmers- Individuals/ Joint borrowers who are owner cultivators.
II. Tenant farmers, Oral lessees & Share croppers.
III. SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers
etc.
Features Following procedure shall be adopted for fixation of limit under SKCC.
A. Farmers raising single crop in a year:
Limit for the first year:
Limit for cost of cultivation: Scale of finance (as decided by the District Level
Technical Committee) for the crop proposed to be cultivated multiplied by the
extent of area cultivated.
After arriving at the limit for cultivation of crop as above, 10% of the limit shall be
added towards post-harvest/ household/ consumption requirements of the farmers.
20% of the limit shall be added towards expenses relating to repairs and
maintenance of farm assets, crop insurance, premium for Personal Accident
Insurance Scheme (PAIS) and asset insurance.
All the above will form the limit for the first year.
Limit for second and subsequent years:
The limit arrived at as above for the first year shall be taken as the basis for fixation
of limits from 2nd year to 5th year.
In order to take care of the increase in Scale of finance/ cost escalation, 10% of the
limit fixed for the first year shall be added to the first year limit for arriving at the
limit for second year.
Similar procedure shall be adopted for arriving at the limit for 3 rd, 4th and 5th year.
B. Farmers raising multiple crops in a year:
Limit for the first and subsequent years:
The limit for first year shall be arrived at by following the procedure as prescribed
above for farmers raising single crop in a year, depending upon the crops cultivated
as per proposed cropping pattern.
10% of the first year limit shall be added to the first year limit towards cost
escalation/increase in Scale of finance for arriving at the second year limit.
Similar procedure shall be adopted for arriving at the limit for successive years (3rd,
4th and 5th).
In this method, it is assumed that the farmers adopt the same cropping pattern for the
remaining four yeras. In case, the cropping pattern adopted by the farmer is changed
in the subsequent year, the limit may be reworked.
Simplified documentation and absolute flexibility in operation of the staggered limit
fixed following the procedure as per Cir No.211-2012-BC.
Disbursement:
The limit under SKCC is in the nature of revolving cash credit facility. There should be
71

no restriction on number of debits and credits. Further, the drawing limit for the current
season/ year may be allowed to be drawn by using any of the following delivery
channels.

Operations through withdrawal slip.

Operations using cheque facility.

Withdrawal through ATM/Debit Cards.

Operations through Point of Sale (PoS) facilities.

Personalised Rupay Kisan Cards (RKC) to be issued to all SKCC holders following
the relaxed procedure for issue through CARMAN application made available by
CO: Debit Card Cell, Card Centre.
Interest at saving bank rate will be paid on daily product basis for credit balance of `
500/- or more held continuously in the account for 15 days or more.
Personal Accident Insurance Cover available up to ` 50,000/- to the card holder up to
70 years of age.
National Agriculture Insurance Scheme (NAIS) and Weather Based Crop Insurance
Scheme (WBCIS) cover provided for the notified crops in the notified area / season
wherever the concerned State Govt. has issued such notification. ROs are designated
as nodal offices for implementation of the insurance schemes and the guidelines issued
for coverage from time to time are to be adhered to.
Premium requirements for Crop Insurance, Asset Insurance and Personal Accident
Insurance are eligible to be included while arriving at the limit.
Benefit of the Interest Subvention Scheme of GOI extended for crop production limit
up to a maximum of ` 3.00 lakh. Guidelines issued in this regard from time to time to
be adhered to.
Branches provided with GEFU upload utility for bulk opening of accounts in CBS to
ease the pressure during the cropping season
Systems and procedures, Checklist and Dos/Donts prescribed to be strictly followed
to deter unscrupulous parties / use of fake documents / records
Circulars 1. 211-2012-BC-PSCD-16 dated 20.07.2012--Base guidelines.
2. 258-2012-BC-PSCD-21 dated 07.09.2012-Checklist.
3. 301-2012-BC-PSCD-26 dated 22.10.2012-Modified guidelines.
4. 329-2012-BC-DIT-07 dated 20.11.2012-Bulk opening of accounts through Gefu
upload.
5. 057-2013-BC-PSCD-08 dated 18.03.2013-Care to be exercised.
6. 121-2013-BC-PSCD-13 dated 14.05.2013-New Rate of Interest.
7. 155-2013-BC-PSCD-18 dated 04.07.2013-Dos and Donts.
2. SYNDICATE KISAN SAMRUDDHI CREDIT CARD (SKSCC)
A composite credit product for crop production, working capital and small
Important
investment credit of medium term nature and consumption credit requirements of
Features
the farmer.
Validity is 5 years subject to annual review.
Investment credit requirements of small nature having only medium term
maturity of not more than 5 years.
Eligibility:

All farmers having agricultural lands in their own name and residing in the service /
operational area of the branches are eligible.

72

Features

Maximum
limit
Maintenance
of Records:

Release
Terms/
Precautions:
Rate of
Interest /
Margin /
Security /
Prudential
Norms
Insurance:

Fixation of Credit Limits

Single point credit assessment for both short term as well as term loan
requirements of farmers for agriculture and allied activities including
consumption credit component etc.
Short term credit limit eligible to be assessed / arrived at as per the norms /
procedure prescribed for SKCC.
Assessment investment credit requirement - Details of investment activities
having medium term maturities not exceeding 5 years for agriculture and allied
activities for the full year shall be obtained including the probable months of
need and worked out based on the unit cost.
Total credit limit eligible for one full year is assessed on the above lines and
limit is fixed taking into consideration the repayment capacity of the borrower.
` 5.00 lakh.
Pass book to be issued recording the two parts Short term limit in the form of overdraft facility and
Investment credit portion in the form of term loan.
Maintain separate accounts for Short Term component and Term Loan component
exclusively for the facilities under SKSCC
Operation allowed in the overdraft limit as and when required and term loan
component to be released as per requirement in his credit plan furnished and
approved by the bank. End-utilization to be ensured and necessary recovery steps to
be taken if mis-utilized.
As per extant guidelines for agricultural loans

Cover eligible crops under National Agricultural Insurance Scheme in notified

areas
Cover investment credit component such as pump set, power tiller etc. under
Comprehensive Insurance.
Interest
Interest at SB rate on credit balance of ` 500/- and above remaining for a minimum
Payment for of 15 days continuously in short-term operative limit to be paid on daily product
basis
credit
balance:
Processing & Processing charges and inspection charges shall be collected while arranging the
facility and also on renewal as per extant guidelines.
Inspection
Folio charges shall also be collected for Overdraft component as applicable to
charges:
SKCC.
Validity of overdraft limit is as per the extant guidelines of SKCC and operation
Repayment
is flexible.
schedule:
Repayment for term loan component to be scheduled based on type of activity/
investment and the anticipated income stream / cash flow from all the
investments made on the farm.

73

Review of the OD limit is reviewed on an annual basis and if operation is satisfactory allowed
to continue.
limit:
Reduce the limit wherever the sanctioned limit is not utilised as per the request
furnished by the party at the time of submitting loan application.
At the time of renewal, if additional facilities are required, consider subject to
viability of the investment, repayment capacity of the borrower and security
coverage. In such cases, obtain fresh application and documentation from the
parties to the transactions.
Balance confirmatory to be obtained and placed on record on a yearly basis.
Balance
Confirmatory Following recitals to be added after writing details of existing liabilities in
balance confirmation with signature of the borrower and surety.
"The Loan papers and the security documents executed by me along with surety
shall be subsisting for existing/reduced limits. I shall execute separate additional
documents for enhanced limits
AOD to be obtained at least 6 months prior to the expiry of the document if
balance confirmation as above is not obtained
Insurance
Personnel Accident Insurance Scheme (PAIS): The beneficiaries under SKSCC
cover
are to be covered under PAIS as in case of SKCC.
1. Cir No.191-2004-BC-PSC dated 06.10.2004-Base guidelines.
Relevant
2. Circulars listed under SKCC.
Circulars
3. SYND KISAN SWARNA (SKS)
A hassle free loan facility to agriculturists against security of gold ornaments.
Important
Synd Kisan Swarna shall be extended by rural and semi-urban branches only
Features
Purpose-wise eligibility to be assessed and prescribed Loans to Value Ratio to be
maintained.
Synd Kisan Swarna to existing SKCC/other farm loan clients:
Eligibility:
1. No documentary proof shall be insisted upon to existing SKCC / other farm loan
clients since the land holding particulars and proof are already on record with the
Bank. The particulars of existing facility/facilities under SKCC/term loan shall be
mentioned in the Synd Kisan Swarna application form.
2. End utilization of the loan proceeds shall be certified by the sanctioning
authority/authorized official of the branch in Annexure-I to Cir no.182-2010-BC.
Synd Kisan Swarna to other customers
1. For loan amount up to ` 1,00,000/-, the Branches may extend Synd Kisan Swarna
based on the self-declaration given by the farmers. The self declaration by the
farmers regarding their land holding, tenancy, share cropping, oral lease etc., would
be sufficient to establish their status as farmers.
2. For loans above ` 1,00,000/-, documentary proof like copies of land records, land
revenue paid receipts, transfer deeds, land possession certificate etc., shall be
obtained and loan shall be sanctioned taking into consideration the requirement of
the farmer for meeting the cost of cultivation of crops or expenses related to
investment in agriculture or allied activities.

Further, in both the above instances, the sanctioning authority/authorized

official of the Branch shall ensure and certify the end utilization of the loan availed
by the farmer in the Annexure -I to Cir No.182-2010-BC and keep the same along
with loan papers.
Urban Branches having service area villages and extending agricultural loans
including agricultural jewel loans may extend Synd Kisan Swarna loans following
the aforesaid guidelines.
Similarly, urban Branches , which do not have service area villages but extend
agricultural loans, may extend Synd Kisan Swarna loans to all existing farm loan
clients only without insisting for documentary proof.
Port town and Metropolitan branches may grant Synd Kisan Swarna, irrespective of
74
the amount, only with the production
of documentary proof by the applicants for
being agriculturists. Further, quantum of loan shall be properly assessed taking into
consideration the requirement of the farmer for raising crops and/or investing in
agriculture/allied activities.

While determining the quantum of loan to be sanctioned, the Branches shall

Release
invariably take into account the requirement of the farmer for crop cultivation /
Terms/
Precautions: investment in agriculture / allied activities in addition to the value of gold pledged.
Value of gold pledged alone will not be the criterion for determining the quantum of
loan. Indicative information on the scale of finance for major crops and unit cost for
various investment activities etc., are provided in Annexure-2 to Cir No.182-2010BC. Since the information is only illustrative, Branches are advised to arrive at the
quantum of loan taking into account the crops raised / investments proposed, scale of
finance for crops prescribed if any or the actual cultivation / investment cost required
by the farmers.
For all SyndKisan Swarna loans for crop production purpose, branches shall avail
Interest
Subvention interest subvention available for crop production as per procedure. However, the
maximum loan amount of short term crop production loans eligible for interest
subvention has been restricted to ` 3.00 lakh per borrower including the limit under
SKCC, if any.
The loan amount for gold loans to agriculturists is capped at ` 3.00 lakh per borrower.
Maximum
limit
1. 182-2010-BC-PSCD-22 dated 19.07.2010-Base guidelines.
Relevant
circulars:
2. 219-2010-BC-PSCD-29 dated 23.08.2010-Amendment to the guidelines.
3. 027-2012-BC-PSCD-02 dated 31.01.2012-Revised rate of interest
4. 224-2012-BC-RBD-39 dated 01-08-2012-Amendments / Additions to gold loan
policy.
5. 027-2013-BC-PSCD-03 dated 06.02.2013-Reiteration of guidelines to avoid
deviation
6. 95-2013-BC-RBD-19 dated 16.04.2013-Revision in scale of finance for 22 Carat
gold.
7. 131-2013-RBD-23 dated 01.06.2013-Lending against specially minted gold coins.
8. 273-2013-BC-RBD-43 dated 10-10-2013 -Revision of Rate of Interest for Gold
Loans
9. 297-2013-BC-RBD-46 dated 08-11-2013 -Maximum limit for gold loans to
Agriculturists
10. 315-2013-BC-RBD-49 dated 18-11-2013-Revision of Scale of Finance
11. 332-2013-BC-PSCD-27 dated 26-11-2013-Relaxation in obtaining documentary
proof of lands cultivated for loans up to `1.00 lakh in case of customers who are
not existing SKCC or other farm loan clients.
12. 073-2014-BC-RBD-10 dated 28-02-2014-Directions on maintenance of prescribed
Loans To Value (LTV) and norms for extending jewel loans for 22 carat gold.
4. SYNDICATE FARM HOUSE SCHEME FOR AGRICULTURISTS
For constructing new farmhouse on the farm or in the village where the farmer
Purpose:
normally resides.
For acquiring additional Farm House even if the borrower or his spouse/dependent
children are already having an existing Farm House subject to satisfying other
terms of the scheme.
For purchase of ready built farm house.
For repair to the existing farmhouse
Farmhouse should consist of at least any two of the following structures whether
Requirements:
attached to main housing unit or as separate unit.
Store house for farm inputs/produce.
Cattle shed to house farm animals.
Tractor/Power tiller/Cart/Equipment/Implements shed.
Threshing/drying yard with or without processing facility.
75

 Work shed for weaving and other non-farm activities.

Sericulture shed/silk worm rearing house.
The size of the farmhouse should be relevant to the size of the family and net
income from the farm and repaying capacity of the farmer.
Should be a farmer from the operational area.
Eligibility
The applicant or any member of his family should not be defaulters to any Bank or
financial institution.
The age of the applicant should not be more than 55 years as on date of
application.
Maximum eligible age may be relaxed from 55 to 60 years in deserving cases by
the sanctioning authority subject to one of the legal heirs joining the transaction as
co-borrower.
Maximum eligible age beyond 60 years may be relaxed in deserving cases by the
next higher sanctioning authority subject to condition that those persons who have
/ may have interest in the property join the transaction as borrowers and also
execute the mortgage
Quantum
of Quantum of loan is to be fixed on the basis of estimated cost of
construction/repairs.
Loan
Maximum eligible loan for construction/acquiring new farmhouse is ` 15.00 lakh
or 75% of estimated cost of construction / acquisition whichever is less.
Maximum eligible loan for repairs is `2.00 lakh or 75% of the estimated cost of
repairs whichever is less.
25% of estimated cost of construction/acquisition/repairs.
Margin
Rate of Interest Rate of Interest is as applicable to housing loans. Charging of interest is on half yearly
rest as applicable to agriculture loans.
Farmhouse loan shall be excluded for the purpose of aggregation of liabilities for
determining the size of the limits for the purpose of fixing rate of interest on other
loans availed / to be availed by the borrower and interest rate on Farm House loan is
independent of other loans availed by the borrower.
Mortgage of land or creation of charge on agricultural land on which the farm
Security:
house is constructed subject to clear title to the property.
If title to the property where farm house is proposed to be constructed is not clear,
mortgage of agricultural lands having clear title and adequate value to cover the
loan shall be taken. However, it shall be ensured that the site of construction of
farmhouse belongs to the borrower.
However, Branches need not insist for mortgage up to a limit of `1.00 lakh in case
of genuine difficulty in offering mortgage of lands as security. In such cases,
creditworthy party acceptable to the Bank shall join the transaction as surety.
Release terms/ First ensure the investment of applicants contribution.
Loan amount shall be released in instalments depending on the progress in
Precautions
construction on ensuring full and satisfactory utilization of instalment released
earlier.
Maximum of 18 months depending upon the time required for construction. But no
Repayment
repayment
holiday is allowed for loans in case of repairs. Interest accrued during the
holiday
repayment holiday to be collected.
Maximum period for farm house loans other than repairs is 15 years. Maximum
Repayment:
period may be extended up to 20 years based on specific request and keeping in
view the cash flow subject to the condition that persons having interest in the
property join the transaction as co- borrowers or sureties.
Maximum repayment period for Farm House Repair is 5 years.
76

 Repayment may be in half yearly/yearly instalments along with interest.

Powers delegated for granting Housing loans shall be exercised for sanctioning the
Sanctioning
loans.
powers
Plan and cost estimates of the farm house to be constructed to be obtained.
Other
In states wherever permission from Panchayat is compulsory, the same shall be
conditions:
obtained and placed on record along with the loan documents.
Insure against risk of fire with Bank clause.
1. 129/99/BC/CR/42/PSC&RDD dated 20.07.1999-Base Guidelines
Relevant
2. 146-2004-BC-PSC dated 03.08.2004- Modification in guidelines
Circulars:
3. 178-2010-BC-PSCD-21 dated 14-07-2010 Revised Margin / Security
Norms.
AC to ROs vide Ref. No.3016/CO:PSCD/III/2013 23.01.2012-Revised ceiling on
loan amt
4.SYNDJAIKISAN
(REVISED SCHEME)
A hassle free term credit product devised for farmers taking into account a holistic
Purpose
view of their credit requirement for investment purposes in Agriculture and household
purposes with simplified systems and procedures.
a) The farmers who have availed loan under Synd Jai Kisan Scheme and closed the
Eligible
farmers:
same fully or repaid partially as per terms of sanction are eligible to avail fresh
loans under Synd Jai Kisan scheme as per the revised guidelines.
b) For others, farmers with 3 years of proven track record in repayment of farm loans
are eligible.
Eligible
Credit requirement relating to contingent investments in farm development:. For
purposes
example, extension of existing irrigation pipeline in the farm, repair/replacement of
pump-sets components, repair of tractor, repair of cattle shed, fencing, construction
of approach road, replanting of coconut, arecanut, cardamom, coffee etc., in the
existing plantation/orchards on a small scale, replacement of existing dairy and other
farm animals , land development etc., are eligible purposes. The purposes
mentioned are only indicative and not exhaustive.
In addition, Small and Marginal Farmers who would like to purchase land to have
viable and productive land holdings are also eligible.
Maximum ` 5.00 lac
Quantum of
Loan
The quantum of loan for the eligible farmers as per (a) & (b) above, shall be
determined as under:
a) Farmers who have repaid the loan in full as per (a):
Irrespective of the loan amount sanctioned earlier and repaid in time as per the
terms of sanction, a maximum amount up to ` 5.00 lakh may be sanctioned
subject to the repaying capacity, land value and annual income of the
applicant.
b) Farmers who have repaid the loan partially as per (b):
In respect of the beneficiaries who have availed financial assistance earlier
under the scheme and repaid the same partially as per terms of sanction, the
quantum of fresh loan may be equal to or less than the amount of repayment
already made, subject to an upper limit of ` 5.00 lakh. The stipulated amount
may be sanctioned subject to the repaying capacity, land value and annual
income of the applicant.
c) For others i.e., the farmers with 3 years of proven track record of prompt
repayment of farm loans as per Sl. No.1 (b), a maximum amount of ` 5.00
lakh may be sanctioned subject to the repaying capacity, land value and annual
77

income of the applicant.

Criteria for determining the quantum of loan amount:
Following criteria shall be adopted for determining the quantum of loan amount:
(a) The quantum of loan amount should not be more than 40% of the distress sale
value of the land offered as security. For determining the value of land,
Branches shall obtain a Valuation Report from the approved valuer of the
Branch.
(b) Three times annual income of the farmer. For determining the annual income,
an income certificate from competent Revenue Authority shall be obtained.
Whichever is lower in (a) and (b) above shall be taken into account for deciding
the quantum of loan amount.
Sanctioning
Powers

Margin, Rate of
Interest &
Service Charges

Release:

Repayment

Security:

Branch heads, up to their delegated sanctioning powers, are permitted to sanction

credit facilities to the existing borrowers of Synd Jai Kisan Scheme with three years
of proven track record of repayment. In respect of credit proposals falling beyond
the delegated powers of the branches, the same shall be forwarded to respective
Regional Office for sanction.
Credit proposals from existing borrowers/farmers with three years of proven track
record of repayment of farm loan and who have not earlier availed loan under
SyndJaiKisan shall be forwarded to respective Regional Office for sanction.
As per extant guidelines on Agril. credit
As and when required by the borrowers. End utilization of the amount already
released shall be ensured before releasing any further amount and maintain records
there of like receipts, vouchers, follow-up reports etc.
a. Cut Back Norm:
Cut back towards repayment shall not be more than 50% of farmers annual income
from farm and non-farm sources. While arriving at the cutback amount, branches
shall take into account the repayment towards existing liabilities as well as other
family commitments.
b. Repayment period:
The loan sanctioned under the scheme shall be repayable within maximum period of
7 years including 11 months of repayment holiday. The repayment schedule shall be
fixed after discussing with the farmer and taking into consideration the expected
date of harvesting and marketing of the farm produce.
The facility shall be secured by creation of mortgage/ charge on land after ensuring
clear title to the property by obtaining legal opinion from the panel advocate. In case
of existing mortgage/ charge, supplementary legal opinion is to be obtained while
considering fresh facility under the scheme.
The value of the security should satisfy the criterion prescribed under point No. 4(a)
above and the quantum of loan shall be determined taking into consideration the
existing and proposed loan.
Valuation of the Security:
The value of land proposed to be offered as security shall be got valued by the
approved valuer of the Branch in respect of proposals from beneficiaries who have
repaid fully / repaid partially or from farmers with 3 years of proven track record of
repayment of farm loan.

78

Classification & The loans disbursed under the scheme shall be classified under Direct Finance to
Agriculture.
Reporting:
While reporting in AR-1106 (ADV 21/49), the disbursement as well as outstanding
under the scheme shall be reported under (1) Direct Agriculture. Further, it should
be reported under the relevant term loan code taking into consideration the activity
for which the major portion of the loan amount is sanctioned. For example, ` 5.00
lakh is sanctioned to a borrower, of which ` 3.00 is for land development purpose
and the balance amount is for other investment purposes. In such cases, the entire
amount should be reported under Land Development (code No 0107 of AR1106/adv
21/49 statement). Branches are advised to report both disbursement and balance
outstanding under a single code in main sheet of ADV 21/49 statement and not to
segregate and report under different codes of ADV21/49.
Under supplementary information in AR-1106 (ADV 21/49), the progress under the
scheme shall be reported under code number 3011.
1. 271-2011-BC-PSCD-18 dated 01-10-2011-Guidelines of Revived Scheme
Relevant
2. 282-2009-BC-PSCD-30 dated 25-11-2009-Discontinuation of earlier scheme
Circulars:
3. 148-2007-BC-PSCD-05 dated 19-02-2007-Comprehensive guidelines of earlier
scheme.
5. SYND GREEN HOUSE
A Scheme for Financing Green House Technology- Cultivation of Flowers and Vegetables under
Low Cost Green Houses
Purpose & The usual practice followed in traditional agriculture is growing of crops under open field
conditions where the growth of the crop and its yield are subject to agro climatic
concept:
conditions of the locality, vagaries of climate and attack by pests and diseases. The
farmers do not have any control over these climatic variations which severely affect the
crop production in the open field conditions. Thus, the modern or scientific cultivation
developed the protective cultivation technology to grow crops in controlled climate for
optimum production from the crops.
Protective cultivation technology is a cropping technique wherein the micro climate
Protective
surrounding the plant body is partially / fully controlled to match the requirement of the
cultivation
plant species grown during their period of growth. Along with the advancement in
technology
agriculture various types of protected cultivation practices suitable for a specific agroclimatic zone have emerged. Among these protective cultivation practices, Green house /
poly house cum rain shelter is the most popularly adopted one for growing flowers and
vegetables to meet the demands of both domestic and export market.
Advantages The benefits which can be derived from the green house cultivation are as follows:
1. The control of micro climate or environment enables growing the crop suitable to the
of green
area at any time of the year anywhere in the world.
house
2. The crop yields are at the maximum level as the output per unit area or per unit
technology
volume or per unit input is optimum.
3. Higher quality of production is ensured as the products are free from insect attack,
pathogens and chemical residue.
4. High value and high quality crops could be grown for export markets and thereby
increase the income of the farmer, particularly the one with small and the marginal
land holding.
5. It can be used to attract the educated rural youth to farm sector and generate self
employment to them.
However, our branches were hesitant to entertain proposals under hi-tech horticultural
projects for cultivation of flowers and vegetables due to non availability of scheme
guidelines. Keeping this in view, a model scheme for financing green house technology
for cultivation of flowers and vegetables under low cost green houses duly approved by
the Competent Authority was circulated to the branches / offices under the brand name
79

Low cost
Green
Houses:

Planning
and
Designing
for a Green
House
Facility:

Financial
assistance:

Synd Green House, in December 2010.

Green Houses are framed structures covered with transparent or translucent material and
large enough to grow crops under partially or fully controlled environmental conditions to
get maximum productivity and quality produce. In the prevailing economic conditions
where capital is a scarce input, majority of the nurserymen and entrepreneurs prefer low
cost green houses.
The green structure is location specific and needs to be designed to withstand the load of
covering material, intensity of rain, wind velocity and specific cropping activity.
Selection of Site:
Selection of proper site is important for better functional environmental operations and
management of a green house. Adequate provision should be made to divert surface water
away from the green house as ground slope for drainage is an important factor. Green
house should be located away from the buildings and trees to avoid obstruction of
sunlight. Orientation of the green house could be in any direction when they are in single
spans. But multi-span green houses should be oriented in North-South direction only, to
avoid continuous shading of certain portions of green house by the structural members.
Components of Greenhouse:
While a low cost green house has normally only two segments viz., the frame and the
covering material, the high and medium cost green houses have an addition,
environmental control gadgets / equipments which add to the cost, besides having
different life periods.
Dos and Donts in Green House Construction:
1. Structure should be properly oriented and strong enough to withstand the wind
pressure.
2. Film must be stretched and secured to the frame tightly, to avoid tearing of the film.
3. Sagging of the film could be avoided by drawing GI wire over the arches tightly.
4. Sufficient ventilation should be given for exchange of air / heat.
5. All ventilations must be provided with insect proof mesh / rambonet.
6. The greenhouse cost per sq. mt. will be inversely proportional to the area of the
structure.
Utilization of Green House:
A low cost green house can be utilized for following two distinct purposes.
1. Propagation of Plant Material: Green House will not only help in getting a higher
extent (80 to 90 %) of graft success, but will also help in extending the period of
grafting almost throughout the year irrespective of season and ambient conditions. It
is however, desirable to utilize such low cost structures for propagating high value
horticultural crops (fruits, plantation, medicinal, aromatic and ornamental) and those
which are difficult to propagate under ambient conditions to fetch high and sustained
returns.
2. Growing of Commercial Flowers: The low cost green house could also be usefully
utilized for commercial cultivation of roses, gerbera, carnation and gladiolus for
getting higher productivity and quality flowers. A green house even 100 sq.mt area, if
utilized for crops like roses can accommodate 700 to 750 budded plants of choice
varieties.
For model projects dealing with the techno- economic details for cultivation of flowers
like Gerbera, Rose and carnation and vegetables like coloured Capsicum and Broccoli,
branches may refer the circular
National Horticulture Board (NHB) is providing subsidy assistance for establishing HiTech agricultural crops such as for flowers, vegetable cultivation and raising nursery
under green house / poly house under their Scheme for Development of Commercial
Horticulture through Production and Post Harvest Management. However, with effect
from 1st May 2010, NHB will consider proposals for issue of Letter of Intent (LoI) and
80

Relevant
Circulars

subsidy in respect of projects having an area of more than 10 Acres under open field
conditions and more than 1000 Sq. Meters under controlled conditions / protected
cultivation.
It is informed that projects under the scheme with 10 Acres & less in open cultivation
conditions and 1000 Sq. Meter & less under controlled conditions / protected cultivation
will be considered under the National Horticulture Mission (NHM) by the respective State
Directorate of Horticulture Mission. Therefore, the Branches have to properly educate
and guide the farmers / entrepreneurs for approaching the right agency for obtaining
subsidy for the project undertaken by them.
The pattern of subsidy provided under the scheme is as under:
Capital investment subsidy not exceeding 20% of the total project cost with a maximum
ceiling of ` 30 Lakh per project in North-Eastern / Tribal /Hilly areas. Capital investment
subsidy not exceeding 20% of the total project cost with a maximum ceiling of ` 25 Lakh
per project in other areas.
1. 185-2010-BC-PSCD-23 dated 22.07.2010 Scheme guidelines
2. 32-2008-BC-PSCD-02 dated 08-02-2008 NHB Scheme details

6. SYNDKISAN SATHI (SKS)

SyndKisan Sathi is a debt swap scheme for farmers indebted to non-institutional
Purpose &
concept
sources like money lenders.
The scheme is introduced to provide financial assistance to farmers to redeem their
outstanding dues to non-institutional sources like money lenders and to free them from
the clutches of such lenders
The eligibility criteria for availing credit facility under the revised Debt Swap Scheme
Eligibility:
are as under:
All farmers including tenant cultivators / share croppers / oral lessees from the
service area villages of the branch, who are indebted to non-institutional money
lenders including existing SKCC borrowers and future SKCC borrowers drawing
SKCC limit up to ` 3.00 lakh.
The existing SKCC borrowers, who have already availed loan under debt swap
scheme as per circular No.309-2010-BC can either continue the same facility or opt
for a higher loan not exceeding ` 1,00,000/- including loan already availed, subject
to regularity of the existing loan availed under debt swap scheme/other schemes
and production of a notarized affidavit for having higher debt from noninstitutional money lenders without any additional security. The notarized affidavit
as per annexure shall be obtained.
The fresh loan under SyndKisan Sathi shall be a separate loan in cancellation of
existing loan availed under debt swap scheme in terms of circular no.309-2010-BC,
if any.
Need based credit against the indebtedness of the farmer from money lender with a
Quantum of
loan:
maximum of ` 1.00 lakh per farmer.
- NIL No separate security will be insisted upon since the farmers including tenant
cultivators/share croppers/oral lessees are already availing SKCC/crop loan from us
and the security taken for SKCC/crop loan will be taken as security for this loan.
Release Terms : Loan amount shall, wherever possible, be released directly to the creditor/money
lender against a suitable discharge from the creditor. However, at the request of the
borrower, if the Branch Head is convinced about the proper utilization of the loan
proceeds, then, the loan amount may be credited to the borrowers Savings Bank
Margin:
Security:

81

account and the receipt for payment to the money lender need not be insisted.
However, a notarized affidavit, as per annexure to Cir No.75-2012-BC, should be
obtained to ensure that the money lent will be utilized for repayment of the debt with
the non-institutional lenders.
The loan shall be repaid in 5 to 7 years, including a moratorium period of not
Repayment
exceeding 12 months. The repayment schedule may be fixed in half yearly/yearly basis
period:
synchronizing with the harvesting season of crops grown/proposed to be grown, after
consultation with the borrower. Wherever possible, the farmer borrowers may be
encouraged to open a Pigmy Account to enable them to pool their savings, if any,
which can be utilized for repayment of the loan.
Rate of interest: As per circular No. 121-2013-BC-PSCD-13 dated 14.05.2013 and revised from time to
time. The interest rate, at present, is as under:
For loan amount up to ` 50000/- Base Rate plus 0.25% i.e., 10.25+0.25 = 10.50%
p.a.
For loan amount above ` 50000/- and up to ` 1,00,000/- Base Rate plus 0.75%
i.e., 10.25+0.75 = 11.00%
Applicable tenor premium shall be loaded to the above rate.
The loan under this scheme is not to be aggregated with other loans and vice versa for
determining the size of loan for application of rate of interest.
Under Branch powers within the sanctioning powers as per circular No. 141-2012-BCSanctioning
RMD-16 dated 17-05-2012 (If the total limit exceeds the sanctioning powers of the
Powers:
Branch, RO sanction shall be sought).
Documentation: As applicable to agriculture advances.
Loans granted under the scheme are eligible for refinance from NABARD. Therefore,
NABARD
Refinance:
Branches are advised to report disbursements made under the scheme to respective
Regional Office as per extant guidelines. Branches shall maintain proper records in this
regard.
Classification & 1. The advances under the scheme shall be classified under direct finance to
agriculture and disbursements as well as outstanding shall be reported under code
Reporting:
number 0168 of ADV 21/49 statement (S.No. B(s)-Advances to Debt Swap-(Synd
Kisan Sathi).
2. Loans sanctioned under the scheme shall be arranged under product code 840- FL
Debt Swap. Branches shall not use any other code to arrange the facility.
1. Branches should discuss with each identified person and assess the credit
Other
requirement and repaying capacity etc.
conditions:
2. Farmers are required to satisfy the branch officials regarding indebtedness to
money lenders. The appraising officer shall prepare a suitable note for having got
convinced about such debt and the same shall be countersigned by the Branch
Head.
3. Defaulters with other Banks or organized sector lenders like other financial
institutions are not eligible.
4. Branches may take the help of Farmers Clubs / SHGs /JLGs /NGOs etc. for proper
identification of eligible farmers who are indebted to money lenders.
5. Sanctioning authority should thoroughly assess requirement of the farmer and
clearly establish the genuine need, repaying capacity and credit absorption capacity
before lending under the scheme.
6. Installments may be fixed based on income of the farmer, taking into account
savings in terms of reduced interest burden during post redemption of high cost
82

Relevant
circular:

debt and future farm income.

7. The branches shall exercise proper caution to extend the facility by ensuring
genuineness/ correctness of the claim of the high cost indebtedness to ensure that
there is no mis-utilization of the facility.
8. Branches shall educate the farmers not to fall into clutches of money lenders again.
9. The farmers, who approach the Bank / are identified for loan under the debt swap
scheme, shall be asked to produce a notarized affidavit, as per annexure to Cir
No.75-2012-BC-PSCD-06 dated 12-03-2012, indicating the debt taken from the
money lender(s).
10. The sanctioning authority should satisfy himself about the income stream of the
borrower, which should be sufficient to liquidate the existing as well as proposed
one under SyndKisan Sathi before sanctioning any facility under debt swap
scheme.
11. Branches shall ensure that interest and installments of debt swap facility granted to
the farmers are recovered while renewing/reviewing the SKCC facility.
075-2012-BC-PSCD-06 dated 12.03.2012.

7. SYNDKISAN TATKAL
The Department of Financial Services, Ministry of Finance, Govt. of India vide their
Background
Circular Ref. No.F.No.21/7/2012/AC dated 26.07.2012 advised all Commercial Banks
to devise and implement six new products for the benefit of farmers as recommended
by a working group of Bankers constituted by the Govt. for the purpose. Keeping in
view the norms suggested by the working group, SyndKisan Tatkal Scheme is
introduced by our Bank with the following features
To provide an instant credit facility to farming community for meeting the emergency
Purpose:
credit needs to tide over the temporary difficulties (like post harvest emergencies) in
Agriculture, Domestic or Social fronts.
Individual farmers / joint borrowers (not exceeding 4 farmers) who are existing SKCC
Eligibility
holders having satisfactory track record of at least two years in respect of whom the
branches have been convinced about their capacity for credit adsorption / repayment.
Quantum of
50% of SKCC limit or 25% of annual income subject to a Minimum of ` 1000/- and a
loan
maximum of ` 50000/-. Before sanction of the loan, requirement of credit or credit
absorption capacity and repayment capacity of the borrower shall be properly
assessed.
Documentation, If requirement is beyond 50% of SKCC limit, proper proof of annual income of
Rate of interest, borrower like income certificate from competent revenue authority to be obtained.
Other aspects are as applicable to agricultural term loans.
Processing &
other Charges
As and when required by the farmer/s preferably after the harvest period of crops.
Disbursement
Loan account shall be opened in the product code 842 only.
To be repaid within maximum period of 5 years in half yearly / annual installments
Repayment
based on income generation to the farmer.
Period
Existing security / ies obtained for SKCC limit shall be taken as security. No
Security:
additional security to be obtained. However, when the amount exceeds ` 1.00 lakh,
security shall be obtained as per the extant guidelines of SKCC.
Classification of Under Direct Agriculture segment of Priority Sector.
83

loan
Asset
Classification
Norms:

Since it is essentially granted to farmers as a post harvest facility to provide liquidity

to farmers, Crop Season delinquency norm prescribed for agricultural loans will be
applicable to this facility also for asset classification.

Relevant
Circular

049-2013-BC-PSCD-06 dated 06.03.2013 & AC to ALL ROs vide Ref.

No.59/2943/PSCD-V/NF dated 25.03.2013

8.LOAN FOR PURCHASE OF LAND FOR AGRICULTURAL PURPOSE

Background

Purpose:

Eligibility

Location of Land
Holding

Quantum of loan

Valuation

The Department of Financial Services, Ministry of Finance, Govt. of India vide their
Circular Ref. No.F.No.21/7/2012/AC dated 26.07.2012 advised all Commercial
Banks to devise and implement six new products for the benefit of farmers as
recommended by a working group of Bankers constituted by the Govt. for the
purpose. Keeping in view the norms suggested by the working group, The Scheme
for financing farmers for purchase of land for Agricultural Purpose is one among
them. As per circular No. 142-2006-BC-PSC dated 30-06-2006 the guidelines of the
scheme revised by NABARD for financing purchase of land for agricultural purpose
has been communicated to all the Branches. The Bank has reviewed the guidelines
of scheme under implementation in our Bank against the norms in the new product
and accorded permission to align the guidelines of the scheme in our Bank with the
norms suggested by the working group in the new product. As a result, the
guidelines of afore said scheme have been revised as under:
The objective of the scheme is to extend term loans to the small and marginal
farmers including share croppers / tenant farmers on easy terms to purchase,
develop / cultivate agricultural land as well as fallow / waste lands with view to
increase agricultural production and productivity.
Bringing the cultivable fallow lands and waste lands under cultivation.
Enable the target group to diversify the present activities and take up allied
activities to agriculture and make their small holdings economically viable.
Small and marginal farmers i.e. those who would own maximum of 2.50 acres
of irrigated land or 5 acres of non-irrigated land including the land to be
purchased under the scheme.
Share croppers / tenant farmers cultivating up to 2.50 acres of irrigated land or 5
acres of non-irrigated land including the land to be purchased under the scheme.
Entrepreneurs with agricultural background provided the state laws permit
purchase of agricultural lands by non-agriculturists.
In all the above categories of eligible beneficiaries, the total land holding of the
borrower after the purchase of land under the scheme should not exceed 2.50
acres of irrigated land or 5 acres of non-irrigated land or its equivalent.
The farmers may be encouraged to purchase land at one place to the extent possible.
In case it is not feasible due to any problems at field level, branches may allow the
farmer to purchase land within the village boundary or in a radius of 3-5 Kilometers
from the existing piece of land owned by him, keeping in view the manageability of
the fragmented holdings by the farmers in such case.
However, Branches shall satisfy themselves about this aspect before extending
credit.
The quantum of loan will depend upon area of the land proposed to be purchased
and its valuation. Besides cost of land, the project cost may also include the value of
stamp duty, registration charges for sale / mortgage deed. However, the maximum
loan amount permitted for purchase of land is ` 10.00 lakh
For the purpose of valuation of land for deciding the quantum of finance, the price
84

Sanctioning
Powers

Margin
Rate of interest
Disbursement

Repayment
capacity
Repayment
Period
Security:
Availability of
NABARD
REFINANCE
Classification of
loan
Coverage of
Women

indicated by the farmer may be cross checked with last 5 years average registration
value available with the Registrar / Sub-Registrar of the area, Guidance Value /
Circle Rate fixed by the State and a view may be taken by the sanctioning authority.
The Branches are permitted to sanction loan proposals under the scheme by
exercising sanctioning
powers as noted below:
Scale of Officer heading the Branch
Sanctioning powers
Scale III & IV
` 10 lac
Scale II
` 5 lac
Scale I
` 2 lac
Proposals with loan amounts exceeding the above limits in respect of Scale I and II
shall be referred to Regional Office for sanction.
No margin is stipulated for loans up to ` 1,00,000/- For loans above ` 1,00,000/- a
minimum margin at 10% of the project cost shall be met by the borrower.
Interest rates and penal interest are as applicable to agricultural term loans as per
extant guidelines.
Loan for purchase of land shall be released directly to the seller at the time of
registration of sale deed. An authorization to this effect shall be obtained from the
borrower and the loan proceeds shall be released against proper acknowledgement.
The Branches should satisfy themselves that the borrower would be in a position to
derive adequate surplus income from his production activity on the land being
purchased and other income to repay the Bank loan with interest after the purchase
and that he will be in a position to service the debt without any difficulties.
Loan is to be repaid in 7-10 years in half yearly / yearly installments including a
maximum moratorium period of 24 months. The moratorium period may be fixed
taking into account the gestation period of the project and cash flow.
The land purchased out of bank loan shall be mortgaged in favour of the bank.
NABARD would provide refinance under its Automatic Refinance Facility (ARF)
for the loans disbursed under the scheme. Hence, branches may report the particulars
of disbursement in the prescribed format (AR 1176) to the respective RO. However,
submission of drawal application to NABARD by ROs is subject to specific advice
from CO: PSCD regarding Banks policy for claiming refinance from time to time.
Under Direct Agriculture segment of Priority Sector.

As ownership rights of land to women would lead to their empowerment, women

especially the women in distress, widows, SHG members etc. who are eligible as per
the laid down criteria under the scheme shall be encouraged to own land by
financing purchase of agricultural lands under the scheme.
Other terms & Viability and bankability of the proposal shall be the prime consideration and
only good quality proposals shall be entertained under the scheme. Proper end
conditions.
use shall be ensured after release of loan and necessary records shall be
maintained for the purpose.
As the scheme is basically meant for boosting the production and productivity
of land, finance shall not be provided for acquisition of land for investment /
speculative purpose for en-cashing benefits on rising prices of land.
The purchase of land should be for cultivation / development of agricultural as
well as fallow land or for establishing / diversifying into other allied activities.
Wherever farmers intend to purchase uncultivated / waste lands, they must also
submit their plans for developing the same and bringing it under cultivation
without any delay.
Whenever farmers are financed for purchase of un-irrigated land, the farmers
should be encouraged to go in for suitable crops like horticulture / plantation
85

Asset
Classification
Relevant
Circular

crops depending upon the climatic conditions and also take up activities like
dairy, poultry etc.
Proposal for development of the land purchased or for diversifying into other
allied activities such as
Dairy, Poultry etc. may be entertained with comprehensive details about the
project proposed to be under taken by the farmer and subject to technical
feasibility & economic viability of the proposal and discretionary powers of the
Sanctioning Authority for the purpose.
Wherever land development involves digging of open wells / drilling of bore
wells, the possibility of getting electricity supply on priority basis such as under
Tatkal scheme should be explored.
Arrangements to lift water from the well for irrigation purpose shall form part of
the development proposed.
Loan sanctioned for post purchase development works may be released in
stages after title of the land purchased out of loan is got transferred in borrowers
name and after completion of mortgage formalities.
In certain States / Regions, State Governments have imposed restrictions on
sale/ purchase of agricultural land (Eg. Tribal belt, SC / ST, Hill areas etc). The
branches shall ensure at the time of obtaining legal opinion that no such
restriction apply while entertaining the loan proposal for purchase of land.
During the period of loan, the farmer shall not sell the land.
Loan shall be classified under Direct Agricultural Advances.
BC 09/2013 /PSCD Dt. 10.01.2013., 83/2014, 84/2014

86

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