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BCC:BR:104:404 20.11.2012
Dear Sir,
We request a reference to our circular no. BCC: BR: 99:268 dated 6th September
2007 informing about the product features of retail asset product “Baroda Traders
Loan”.
You are aware that ‘Baroda Traders Loan’ is one of the important key products of
retail loan basket available against the security of immovable property/ies with a
maximum limit of Rs.200 lacs for small Borrowers engaged in the trading activities of
goods in physical form. The assessment of working capital requirement under BTL is
done on the line of Nayak Committee recommendations. Therefore Zone/Regions
generally should not recommend for considering deviation for sanction of BTL limit
beyond Rs.500 lacs. All cases above Rs.500 lacs need therefore to be preferably
considered out side the scope of “Retail Banking” with a view to have better credit
supervision and control.
During the last five years various modifications in product features have taken place.
With a view to provide updated features of the product to our operating units and
aggressive marketing of the product, we are enclosing the revised product profile of
“Baroda Traders Loan”.
We request you to create awareness amongst the staff members of the Branch as
well as amongst the target Trader’s Community operating in your area of operation
for aggressive marketing of the product.
Yours faithfully
(S.Kalyanaraman)
General Manager
(Retail Banking,CSOs,Mktg.,PUB.,PR & OL)
Encl: As above
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Valuation:
Age of Property
17 Take over Norms The operating units may take over good quality
accounts from other Banks subject to complying with
non-financial norms laid down in Domestic Loan Policy
/ revised guidelines advised from time to time.
CREDIT RATING MODEL FOR BARODA TRADERS LOAN UPTO RS.200 LAC
Max Marks
Marks awarded
I Compliance Basic Business Requirements 15
a Required licenses and permission obtained 5
(If not required- parameter will not be applicable)
b Experience and market reputation of entrepreneur 5
(If experienced more than 3 yrs- full marks otherwise
to be reduced accordingly)
c Present Business /Activity OUtlook 5
( Marks to be awarded as per prudence of the appraising
/sanctioning authority)
II Business Performance 20
1. Achievement of Projected Sales Turnover 10
a If achieved 100% of target 10
b Negative Variance within 10% below accepted level 8
c Negative Variance above 10% but below 20% 5
d Negative Variance above 20% 0
III RATIOS 15
1 Current Ratio 5
a 1.33 and above 5
b Below 1.33 and upto 1.20 3
c Below 1.20 and upto 1.10 1
d Below 1.10 and upto 1.00 0
e Below 1.00 (-) 5
2 D E Ratio 10
a 3.00 and below 10
b Above 3.00 and upto 5.00 4
c Above 5.00 and upto 6.00 0
d Above 6.00 (-) 4
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Grading and cut-off score for the proposals under the proposed Rating System;