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The Bank of Khyber was established in 1991 through Act No. XIV, passed by the Provincial Legislative Assembly of the KHYBER PAKHTUNKHWA Province of Pakistan. It was awarded status of a scheduled bank in September 1994. The Bank of Khyber enjoys a unique position, and stands out amidst the other banks operating within Pakistan, and has the privilege of being bracketed amongst the only three government banks in the country. Currently the bank has a total branch network of 50 Branches plus 4 sub branches throughout the country. At present, 21 of its branches functioning as dedicated Islamic Banking Branches, whereas 29 branches are conventional banking branches.
MISSION STATEMENT
To increase shareholders' value and provide excellent service and innovative products to customers through effective corporate governance, friendly work environment, and contributing towards an equitable sub-economic growth.
OUR VISION
To become a leading Bank providing efficient and Dynamic Banking Services in both Islamic and Conventional Sectors.
2. Eligibility Criteria
The eligibility criteria contain a) Nationality All Pakistani residents holding valid computerized National Identity Card b) Age of applicant 21 to 55 years for salaried person and 21 to 60 years for businessman / self employed persons. c) Period of Employment/ Engagement in business or profession Salaried persons having an employment history of at least 2 years or more. Self employed and business persons engaged in profession or business for at least 3 years. d) Income i) Salaried Persons Monthly take home salary should be 2/3rd times of the amount of monthly installment. ii) Self Employed/Business Persons Average monthly verifiable income should be 3 times of monthly installment. Individuals who earn less than Rs. 15,000/- per month or Rs. 180,000/- per annum shall not be eligible for financing.
3. Maximum Limit
Rs.1.20 Million
4. Down Payment
Minimum Down Payment for the facility will be 20%.
9. Schedule Of Charges
Processing charges Rs. 2,500/ Early termination / settlement charges to be calculated on daily product basis Re-possession charges as Actual.
Through BOK Conventional Branches where application form is available in all branches.
1. Offering
All BOK Conventional Branches Offering Housing Finance.
3. Eligibility Criteria
e) Nationality All Pakistani residents holding a valid computerized National Identity Card f) Age of applicant Between 22 and 55 years g) Period of Employment/ Engagement in business or profession Salaried person having an employment history of at least 5 years or more with a continuous employment of 2 years with the same employer. Self employed and business persons engaged in a profession or business for at least 5 years. h) Income i) Salaried Persons Monthly take home salary should be 2/3rd of the amount of monthly installment. ii) Self Employed/Business Persons Average monthly verifiable income should be 3 times of monthly installment. Individuals who earn less than Rs. 15,000/- per month or Rs. 180,000/- per annum shall not be eligible for financing. (i) Title of the Property Title of the property should be clear and marketable. The property shall be free from all encumbrances and charges. Permission to mortgage from the lessor or lessee (in case of sublease) shall invariably be required if term of lease/sub-lease provides for such permission before mortgage of the property. (j) Purpose Financing shall be allowed for House Purchase, Construction and Renovation.
4. Maximum Limit
Rs.10.00 Million
5. Pricing Criteria
Risk Rating Based For Example: Six Months KIBOR + 500 BPS with a floor rate of 18%. The mark up will be revised on 1st January and 1st July each year according to the KIBOR rate at that day.
6. Schedule Of Charges
Processing charges 0.1% of the facility amount Early termination / settlement charges to be calculated on daily product basis Partial payment charges 5% of the amount to be adjusted
7. Required Documents
Clients request Borrower Basic Fact Sheet e-CIB Account statement for the past 6 months Application of finance on prescribed Performa Proof of income i-e salary slips, income tax return or affidavit, whichever is applicable Attested photocopy of valid CNIC 01 passport size color photograph Property Documents NOC from the concerned Authority to mortgage where applicable Property valuation certificate from bank approved evaluator Copy of valid CNIC & income proof of guarantor
8. Repayment Frequency
Monthly installments through post dated cheques Time Period 1 15 years
Through BOK Conventional Branches where application form is available at all Branches.
BANK CHARGES
Part H
1 (1.1)
CONSUMER FINANCE
AUTO FINANCE
Application Processing Fee (Inclusive of documentation charges Minimum Rs.5,000/Yes non-refundable for individuals only. (change if any would be notified across the board on monthly basis) In the event of preYes mature liquidation, penalty shall be 2.5% of the outstanding liability. In the event of partial payments, the penalty shall be 2.5% of the partial Repayment amount. Yes
(1.2)
(1.3)
Late payment Charges on As per terms of sanction Yes overdue rental letter (1.4) Re-possession Charges Actual Yes (1.5) Dishonor of installment Rs.500/- (Flat) per Yes cheque. presentation Note: Auto Finance Charges may vary during business promotional scheme or launching new products. 2 (2.1)
HOUSING LOAN
Processing charges 0.10% of the facility amount, Minimum Rs.500/Actual Actual In the event of premature liquidation penalty shall be 2% of the outstanding liability In the event of partial payment, the penalty shall be 2% of the partial payment amount. As per terms of sanction letter. Rs.500/- Flat per presentation Actual Actual Actual Yes
Lawyer Fee Property Evaluation Charges Early Termination/settlement charges Partial Payment Charges
(2.5)
Yes
Late Payment Charge Dishonor of installment cheque Legal documentation charges Re-possession charges Legal vetting charges
DETERMINANT (2) Where mark-up/ interest or principal is overdue by 90 days or more from the due date.
2. Doubtful.
3. Loss.
Where mark-up/ interest or principal is overdue by 180 days or more from the due date. Where mark-up/ interest or principal is overdue by one year or more from the due date
TREATMENT OF INCOME (3) Unrealized markup/ interest to be kept in Memorandum Account and not to be credited to Income Account except when realized in cash. Unrealized mark up/interest already taken to income account to be reversed and kept in Memorandum Account. As above.
PROVISIONS TO BE MADE* (4) Provision of 25% of the difference resulting from the outstanding balance of principal less the amount of liquid assets.
As above.
Provision of 50% of the difference resulting from the outstanding balance of principal less the amount of liquid assets. Provision of 100% of the difference resulting from the outstanding balance of principal less the amount of liquid assets.
Banks / DFIs may allow Housing Loans in the rural areas provided all relevant guidelines/regulations on the subject are complied with by them. REGULATION R-16 The housing finance facility shall be provided at a maximum debt-equity ratio of 85:15. REGULATION R-17 Banks / DFIs are free to extend mortgage loans for housing, for a period not exceeding twenty years. Banks / DFIs should be mindful of adequate asset liability matching. REGULATION R-18 The house financed by the bank / DFI shall be mortgaged in banks / DFIs favour by way of equitable or registered mortgage. REGULATION R-19 Banks / DFIs shall either engage professional expertise or arrange sufficient training for their concerned officials to evaluate the property, assess the genuineness and integrity of the title documents, etc. It may, however, be noted that the requirement of full-scope and desk-top evaluation, as required under R-8 and R-11 of Prudential Regulations for Corporate / Commercial Banking and SMEs Financing respectively, will not be applicable on housing finance. REGULATION R-20 The banks / DFIs management should put in place a mechanism to monitor conditions in the real estate market (or other product market) at least on quarterly basis to ensure that its policies are aligned to current market conditions. REGULATION R-21 Banks / DFIs are encouraged to develop floating rate products for extending housing finance, thereby managing interest rate risk to avoid its adverse effects. Banks / DFIs are also encouraged to develop in-house system to stress test their housing portfolio against adverse movements in interest rates as also maturity mismatches. REGULATION R-22 The mortgage loans shall be classified and provided for in the following manner: CLASSIFICATION (1) 1. Substandard. DETERMINANT (2) Where markup/ interest or principal is overdue by 90 days or more from the due date. TREATMENT OF INCOME (3) Unrealized markup/ interest to be kept in Memorandum Account and not to be credited to Income Account except when realized in cash. Unrealized mark up/interest already taken to income account to be reversed and kept in Memorandum Account. As above. PROVISIONS TO BE MADE* (4) Provision of 25% of the difference resulting from the outstanding balance of principal less the amount of liquid assets realizable without recourse to a Court of Law and Forced Sale Value (FSV) of mortgaged properties to the extent of 50% of such FSV. Provision of 50% of the difference resulting from the outstanding balance of principal less the amount of liquid assets realizable without recourse to a Court of Law and Forced Sale Value (FSV) of mortgaged properties to the extent of 50% of such FSV.
2. Doubtful.
Where markup/ interest or principal is overdue by 180 days or more from the due date.
RECONCILE b/w BANK CREDIT POLICY & SBP REQUIRMENTS Auto Loan
The reconciliation between bank auto loan policy and SBP requirements based on SBP prudential regulations of consumer financing for Auto Loan. 1. REGULATION R-9 The vehicles to be utilized for personal use only. BOK offering auto loan for personal use only.
2. REGULATION R-10 The maximum tenure of the auto loan finance shall not exceed seven years. BOK offering auto loan period of maximum 5 years. 3. REGULATION R-11 The minimum down payment does not fall below 10% of the value of vehicle. BOK requires Minimum Down Payment for the facility will be 20%. 4. REGULATION R-12 Vehicles financed by the banks shall be properly secured by way of hypothecation. Vehicles are secured through hypothecation in which the BOK take the ownership of vehicle and the Title of the vehicle shall be joint i.e. The Bank of Khyber and the Client. 5. REGULATION R-13 Vehicle remains properly insured at all times during the tenure of the loan. The vehicles are fully secured with insurance in whole tenure of loan. Motor Vehicle will be insured by customer entirely at his/her cost from an Insurance Company of his choice, approved by BOK. 6. REGULATION O-6 The clause of repossession in case of default should be clearly stated in the loan agreement. There is clearly mention in term and condition that in case of default of loan and installments bank will take repossession and there are no charges for repossession other than actual expense. 7. REGULATION O-7 Detailed repayment schedule should be provided to the borrower at the outset. Detail about repayment schedule is mentioned in term and condition, which are equal monthly installments in the form of post dated cheques. 8. REGULATION O-8 In case of used cars the bank shall not finance the cars older than five years. Bank of Khyber offering the maximum limit of 1.2 million for both new and used car not more than 5 year old.
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HOUSE LOAN
The reconciliation between bank house loan policy and SBP requirements based on SBP prudential regulations of consumer financing for house Loan. 1. REGULATION R-15
Banks shall determine the housing finance limit, both in urban and rural areas, in accordance with their internal credit policy, credit worthiness and loan repayment capacity of the borrowers and the total monthly amortization payments of housing loan, should not exceed 50% of the net disposable income of the prospective borrower. Bank providing house loan in installments under demand loan. Bank secured itself by creating maximum ratio of issuance of loan amount that is ratio of 70:30.which mean 70% bank investment and 30% customer investment and bank ensure that the total installment of repayment is not more than 50% of customer net income. 2. REGULATION R-16 The housing finance facility shall be provided at a maximum debt-equity ratio of 85:15. Bank secured itself by creating maximum ratio of issuance of loan amount that is ratio of 70:30.which mean 70% bank investment and 30% customer investment. 3. REGULATION R-18 The house financed by the bank shall be mortgaged in banks favor by way of equitable or registered mortgage. Bank take the documents of tiltlement of house under its possession in case of house renovation loan and take the ownership of house in case of new house purchase or loan for built new house. 4. REGULATION R-19 Banks shall either engage professional expertise or arrange sufficient training for their Concerned officials to evaluate the property, assess the genuineness and integrity of the title documents, etc. Bank takes the services of valuation experts and lawyers for legal expertise and trained there staff members for early valuation of property. 5. REGULATION R-20 The banks / DFIs management should put in place a mechanism to monitor conditions in the real estate market (or other product market) at least on quarterly basis to ensure that its policies are aligned to current market conditions. Bank has a department where current and futures forecast of value of properties and keep in touch with real estate dealers and keep panel of dealers. 6. REGULATION R-21 Banks are encouraged to develop floating rate products for extending housing finance, thereby managing interest rate risk to avoid its adverse effects. Bank of Khyber offering house loan on floating rate, which is updated quarterly.
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