FAQs (RETAIL ASSET)

Sr. No. Observation/ Question Reply

1 How ITR verification is done? ITRs will be verified by CPV agencies/ empanelled CA firm
2 Whether PDC is kept for No, it will continue & remain effective
existing loan need to be
changed.
3 What will happened to ROI in In case of existing Demand/ Term Loans existing ROI will
existing loan? Whether it will be applicable linked with the applicable reference rate i.e.
be linked with CIBIL scores. MCLR/BPLR/ Base Rate.

In case of overdraft accounts, facilities will be reviewed as

per new product program on their due date of review. ROI
applicable as per new pricing structure applicable to the
product program will be applicable to the customer.
4 In Dena Bank, due to higher Concession in existing ROI may be granted in the
ROI, some customer have deserving cases on merits including existing relationship,
changed loyalties, whether expected business potential etc. or in case of OD accounts
BOB ROI can be given to the revised guidelines will be applicable on these accounts
erstwhile Dena customers. as mentioned in above point.
5 Whether annual review has At the time of review, Demand Loans/ Term Loans will be
to be done for existing loans, continue on existing term and conditions, while OD would
that what will be T & C? be reviewed as per new product program
6 In Dena Bank for loans with In Bank of Baroda, CIBIL credit report is taken as primary
Secured loan > 5.00 lacs two and Equifax as a secondary on basis of limit. The
credit reports are obtained. prescribed limit is given below :
How to go about from Day S.No Scheme CIBIL CIBIL &
Zero. . EQIFAX
1 Home Loan < 10.00 lakhs >10.00 lakhs
2 Mortgage < 10.00 lakhs >10.00 lakhs
Loan
3 PL < 1.00 lakhs >1.00 lakhs
4 Auto Loan < 5.00 lakhs >5.00 lakhs
5 Education < 2.00 lakhs >2.00 lakhs
Loan
As per above matrix one or two credit report/s required.

7 Is internal rating for retail System will take care of internal rating.
loan required and what is the
system followed? In case of OD facility, from limit Rs.2.00 lakhs to
Rs.200.00 lakhs, internal rating is carried out in LAPS /
LLPS and for limit above Rs. 200.00 lakhs, internal rating
is carried out in BOBRAM (CRISIL) system.
8 If anybody has been When an application of Home Loan for purchasing
sanctioned a fresh loan, often Home/Flat and for the expenses of similar nature towards
how many years loan for construction/renovation/enhancement and improvements
renovation can be given? (like POP/fixed furniture/fixtures/repairing/room
separation etc) is received simultaneously, the same can
be considered in one single Home Loan.
9 If the cut off CIBIL score for Cut of CIBIL Score is 725 in Home Loan. However, to cater
HL is 725, then why these is requirements of otherwise good/ meritorious customer
ROI for below 725. provision for lower CIBIL bucket is available with
deviation.
10 Can housing loan be Yes, project approved by the BOB, Dena & Vijaya Bank will
sanctioned in Dena Bank continue to be available for financing Home Loans.
Approved Project from
01.04.2019.
11 From branch point of view All the retail asset products applicable to the amalgamated
how the products (Assets & entity will be available in Loan Originating System for all
Liability) gets synchronised the Branches of Dena & Vijaya Bank.
from 01.04.2019.
12 What will happen to legacy In case of existing Demand/ Term Loans sanctioned and
accounts sanctioned & disbursed before 31.03.19 will continue as per existing
disbursed by RAPC? terms and conditions sanctioned by Dena/ Vijaya Bank till
its natural maturity.

In case of overdraft accounts, facilities will be reviewed as

per new product program on their due date of review.

Endeavour should be made to disburse initial amount in

all the sanctioned loan/ OD accounts before 31.03.19,
otherwise sanction given as per existing product program
will cease to exist.
13 Whether any concession NO
would be available to home
loan borrower, in the project
which we have financed?
14 Whether required training A workshop of all the key representative of Dena & Vijaya
will be provided to all Bank engaged in Retail Asset business has been conducted
appraising offices? If it is wherein all the Retail Asset Products are discussed and
decided when the training circulated.
will start?
Such workshops at Regional/ Local level are advised to be
conducted by these participants with the support of local
SMSs of BOB.

In addition to this Bank is providing eccess online

education portal for all the employee shortly. (1. Baroda
Gurukul, 2. Knowledge Management Portal.)
15 Bangalore Development Maximum Moratorium Period: 36 months only for all fresh
Authority (BDA) allotted plot sanction / disbursement w.e.f. 01.04.19. However in
+ construction – BDA gives existing accounts existing sanction terms will prevail.
60 months cap for final
construction & possession to
allottee, thus in such a case
Vijaya Bank allows 60
months moratorium. What
will allow will BOB will treat
it as.
16 Whether industrial property Normally properties allotment in industrial areas are
can be mortgaged under allowed for specific purpose and similarly may be
mortgage loan. mortgaged for specific activities only , hence mortgage of
Immovable properties to secure retail product should be
avoided. However in very deserving cases decision of
accepting Property of Industrial Area may be accepted as
a non-financial deviation on merits. Subject to :-
1- Construction of the property as per approved map
and in the timeline given by authority.
2- There should not be any industry / purpose related
restriction for creating mortgage of the property.
3- Specific permission from the development
authority to create equitable mortgage of the
property for specific purpose.
4- Opinion of Bank Legal (RO/ ZO) to be taken about
enforcement of property under SARFAESI Act
2002.
17 In our Bank, Regarding the In the takeover of Retail Loan, takeover norms to be
takeover, takeover code is complied which is provided in Global Credit Exposure
mandatory takeover Policy of amalgamated Bank.
pertaining to OPL, Account
status, conduct of the
account etc. further it will be
applicable or not.
18 Whether any training Need base training will be conducted for various products
programme scheduled here & processes including LAPS phase manner through;
after and LLPS training? 1. Online by Baroda Gurukul and Knowledge
Management portal
2. Local classroom/ on the job training

19 Global loan policy and retail Bank will provide ID password to all the employee for
master circular links. operating -
1. Baroda Gurukul
2. Knowledge Management System.
These two online portals are being developed by bank for
studying all the banks circular and guideline issued by
banks time to time.
20 How the loans will be - Through employee awareness and education
sanctioned from 01.04.2019 - LAPS / LLPS
or Vijaya Bank common - Baroda Gurukul and Knowledge management
approach which is not portal is being open for all. At both the online
complied through laps. knowledge portal, all the circulars and operational
Please provide the guideline will be available for self-study.
operational Guidelines for - Product programme for amalgamated Bank are
practical processing. being configured in LAPS of Dena & Vijaya Bank.
21 What is the commitment In all new overdraft limits minimum quarterly average
charges? utilization of sanctioned limits should be 60%. In case
quarterly average utilization of sanctioned limit is less
than 60% of the sanctioned limit, interest in the account
will be charged on minimum 60% of sanctioned limits on
quarterly basis as per applicable ROI. The same condition
will be applicable to accounts from next due of review
after 01.04.2019.

22 Who are covered under Corporate cover Public Ltd Co / Private Ltd Co & Firms
“Corporate” under Baroda i.e. Sole Proprietorship firm/ Partnership/LLP/Trust /
car Loan? Society etc.

23 Can we add co-applicants for Addition of co-applicant is permitted. Co-applicant/s

Baroda Auto Loan? should be a family member of the principal applicant.
(Members of family will comprise of spouse, father,
mother, son, daughter, brother, brother’s wife only).
24 Do one need to give No, need to give collateral. But if customer offered
collateral to get a Car Loan? minimum 50% of Loan limit as liquid collateral security
e.g. Fixed Deposit of our Bank, NSC, KVP or LIC Policy,
Concession of 0.50% in rate of interest on Car Loans is
available subject to minimum pricing i.e. One year
MCLR+SP.

25 What about pre-payment / For Individuals borrower Pre-payment / foreclosure

foreclosure Charges? charges are NIL .
In case of Non-individual borrowers Pre Closure within -6-
months : 4% of outstanding as per the original
Repayment/EMI schedule i.e. to be calculated based on
 amortization balance as per repayment schedule will be
charges.
Pre closure after -6- months: Nil

26 What is the maximum limit Maximum Limit: Rs.10.00 Lacs.

for Baroda Two Wheeler
Loan?

27 Which are Bank’s Education Education Loan Schemes of the Bank are broadly based
Loan products? on the Model Education Loan Scheme and Model Skill Loan
Scheme of IBA. Bank offers distinct education loan
schemes for each sub-segment of studies as under;

Sr. Product Name Target Group

1. Baroda Vidya Nursery to standard XII
2. Baroda Gyan College and Higher
Education in India
2 (a) Baroda Regular Courses conducted
Education Loan by the Premier Educational
to Students of Institutions in India
Premier
Institutions
(under Baroda
Gyan)
2 (b) Baroda Executive Development
Education Loan Programmes (Part Time /
for EDP Weekend / Online
Programmes Programmes)
being offered by
Premier
Institutions in
India
3. Baroda Scholar Studies Abroad (Regular
Courses)
3 (a) Baroda Executive Development
Education Loan Programmes (Part Time /
for EDP Weekend / Online
Programmes Programmes)
being offered by
Premier
Institutions
abroad
4. Baroda Skill Loan Skill Development Courses
Scheme
28 What will be maximum loan It is “Need Based Finance”. Though the threshold loan limit
amount under Education for each scheme has been defined, the same can be
Loan? enhanced with deviation from competent authority,
provided the same is support by appropriate security
value and the expected income post the completion of the
course.
29 Is student needs to service Service of interest during the moratorium is optional for
the Interest during the students for Education Loans except loans for EDP
moratorium period? courses.
30 Is there any concession The 1% concession in rate of interest, if interest is serviced
available for servicing of regularly during repayment holiday/moratorium period,
interest during moratorium? subjected to the condition that effective rate of interest
 should not go below MCLR is available for Loans sanctioned
prior to 01.10.2013. This concession has been withdrawn
w.e.f. 01.10.2013.

31 Who will be Joint Borrower in The joint borrower should normally be parent(s)/guardian
Education Loan? of the student borrower. In case of a married person,
joint borrower can be either spouse or the
parent(s)/parents-in-law.
32 Whether we could accept Boarding & lodging expenses as per details mentioned in
“Survey Report” for the following may be considered as a part of schedule of
calculation of personal expenses.
expenditure?
1) Offer / admission letter issued by the concerned
university/institute or
2) I - 20 or
3) Website of the university or
4) Course / College Prospectus or
5) Other information available in public domain or
6) Specific request of the applicant support by
justifiable reasons

However, in case the information is available from several

sources, the lowest of the amount should be considered
for loan eligibility
33 Can we consider education The list of courses mentioned in the circular are only
loan application “for full time indicative in nature. As per the said Circular there are no
Course of Diploma – 2 years restriction for any particular course/stream leading to
in Information Technology Degree or Post Graduate Diploma offered by reputed and
Technical Support Level 5”?. recognized institutes/universities and assessment of
employment potential or future prospects is taken into
account.
34 What will be the Minimum There is no minimum cut off CIBIL score stipulated for
CIBIL Score of the applicant Education Loan scheme (except for EDP Programmes).
and Co-applicant to get the General guidelines to be adhered to on bureau score
Education Loan?. /adverse remarks.

And as per the IBA Guidance Note on Education Loan “If

the joint borrower has a loan account with the bank and
the loan is treated as non-performing asset, the bank runs
the risk of having to consider the student loan also as NPA
ab-initio. To overcome this, the bank may, as a prudent
measure insists on a joint borrower acceptable to the
bank, in case of adverse credit history of the
parent/guardian of the student” “

Further it is need based finance subject to repayment

capacity of the applicant based on expected income after
course completion.
35 Whether we can No, we should not be considered as per the extent
consider/sanction education guidelines.
loan by accepting immovable
property in the name of
Partnership firm, who is
engaged in Real Estate
activity/Housing Project etc?
36 Can we reimburse fees paid For the first year of study, at times institutions insist that
by the student/parents for the students pay fees immediately on admission. As a
the first year of study? special case, such payment if made at the time of seeking
admission, can be reimbursed to the students/parents
 against obtaining necessary proof of payment. It has to be
ensured that no undue advantage is taken on this count.
The expenditure incurred by the applicant for earlier years
however shall not be considered for reimbursement.

For overseas courses, after student’s admission is

confirmed by University, expenses relating to 1 st
semester/year will be considered for reimbursement if the
amount was directly remitted to the University on its
demands.
37 Some courses pursued by the In such cases, Education Loan can be considered under
Students where part of the Baroda Scholar (Education Loan for studies overseas), if
course is in India and part is the Degree/Certificate is awarded by Foreign University.
in overseas. In such cases, In This connection please note that:
whether Education Loan is to a) The student will not be eligible for Interest
be sanctioned under Baroda Subsidy (under Education Loan Interest Subsidy
Scholar? Scheme for studies in India –ELIS).
b) Interest subsidy under Padho Pardesh (Interest
Subsidy scheme for Overseas studies for the
students belonging to minority communities) is
available only if the degree is awarded by
Foreign University.
38 Can we Sanction the loan to Existence of an earlier education loan to the brother(s)
more than one child from the and/or sister(s) will not affect the eligibility of another
same family? meritorious student from the same family obtaining
education loan.
39 How to deal with requests for Repayment of the education loan is based on the future
sanction of collateral free earning potential of the student. Going by the spirit of the
loans to more than one scheme, limit of Rs 4.00 lakh collateral free loan is student
student from the same specific and not family specific. There is no restriction on
family? Is the collateral free giving a second or third collateral free loan to other
limit of Rs. 4.00 lakh for a siblings when one of the siblings has already taken a
student or for a family as collateral free loan.
whole for the purpose of the
scheme?
40 Can we consider second Bank may consider top up loans to students pursuing
Education Loan? further studies within the overall eligibility limit, if such
further studies are commenced during the moratorium
period of the first loan. The repayment of the loan will
commence after the completion of the second course and
further moratorium period, as provided under the scheme.
41 What criteria should be Teachers Training Course /Nursing Course/ BEd will be
adopted to recognize courses eligible for education loan provided the training
like Nursing, Teacher institutions are approved either by the Central
Training, B.Ed. for the Government or by State Government and such courses
purpose of grant of education should lead to Degree or Diploma Courses and not to
loan and the fees to be Certificate Course. Branches can consider the request for
considered for such courses? education loan under our “Baroda Gyan Scheme” for the
above courses conducted by institutions approved by
Central / State Government and leading to Degree or
Diploma courses and not to Certificate Courses.

The fees to be considered for purpose should be the fees

structure as approved by the State Government or
Government approved Regulatory Body for merit seats in
Government Colleges/ Private Self Financing Colleges,
Cooperative and Colleges run by Universities, as the case
may be.
42 Whether students who are As the revised Model Scheme of IBA, “ a meritorious
secured admission under student (who qualifies for a seat under merit quota) will
 Management Quota is eligible also be eligible for loan under Education Loan Scheme
to get the Education Loan? even if the student chooses to pursue a course under
Management Quota.”
43 Whether Bank can PF Balance cannot be marked as collateral security and
earmark/Lien on PF as there is no provision to mark lien on the same.
collateral security to secure
the Education Loan?
44 Can we disburse the loan Disbursement of loan before issuance of VISA can be
before obtaining VISA in case considered with deviation from RMCC, provided the loan
of study abroad ? is fully secured and the payment of fees is refundable in
case VISA is not issued to the student.
45 Is it mandatory to apply As per the instructions of the Department of Financial
Education Loan through Services, Ministry of Finance, Government of India, all
Vidya Lakshmi Portal ? new education loan applications (including applications
received in physical format) are to be applied through
Vidya Lakshmi portal.

If an Education Loan Application is received in physical

format, operating units need to advise the applicant to
submit Education Loan Application only through Vidya
Lakshmi Portal. (Including the applications being
canvassed by convectional DSAs, empaneled by ROs)
(https://www.vidyalakshmi.co.in/Students/)
46 How do I know the details of You can get the details from following URL;
subsidy claims lodge in an
account? https://canarabankcsis.in/Subsidyenquiry/SubsidyEnquir
y.aspx

47 Can we take third party As per the criteria of NCGTC, No collateral security or third
guarantee for loans which party guaranty should be attached with the Loan. No
are to be covered under Additional cover on Education Loan by Govt. / General
NCGTC ? Insurer/ Any person or association of persons carrying on
the business of insurance, guarantee or indemnity.
48 Can Education Loan be taken There are no restrictions on takeover of Education Loans
over from other from other Banks/NBFCs. There is no restriction on stream
Banks/NBFCs ? of study. However, Secured Loan especially for Study
abroad (for any stream) and Study in India (Medical and
Aviation) and un secured loans for students of Premier
Institutions should also be focused.

Such loans can be processed under respective scheme

codes after following respective scheme guidelines.
Operating units while processing such loans should adhere
to the general guidelines on takeover of retail
loans. Operating units while processing such loans should
also take due precautions as exercised while grating a
fresh loan.

In cases where any of the Education Loan Interest Subsidy

is applicable, a declaration may be obtained stating that
Bank of Baroda will not be responsible for any matter
pertaining to subsidy prior to take over and borrowers will
take up the matter with their previous Bank only.

49 What purposes to be
included for sanction of  Construction/purchase of Residential House/Flat
Home Loans?  Purchase of Residential plot of Land and construction
of House
 Loan exclusively for purchase of Residential plot of
land only.
  Takeover/Balance transfer of Home Loans from other
Banks/HFCs/NBFCs/FIs etc.
 Extension of the existing House/Additional
construction
 Reimbursement of expenses already incurred for
Houses/Flats constructed/purchased from own
sources.
 Pre-approved credit limit (Home loan) for liability
customer
 Pre-approved Top up loan facility for our Existing
Home Loan Borrowers

50 What is Risk Based Pricing? When the applicable ROI in the loan is decided on the
basis of Risk associated with the obligor, its called Risk
Based pricing. Bank of Baroda has started Risk Based
Pricing w..e.f. 01.04.16 where risk of the obligor is being
assessed on the basis of Bureau, presently its CIBIL.
51 What is unified processing Under unified processing charges Bank recover processing
charges for Home Loans? charges for all following expenses;

 Processing charges
 Documentation Charges
 Document vetting charges
 Pre-sanction Inspection (CPV) charges
 Advocate charges for Legal opinion
 Valuation charges
 Bureau Report charges
 CERSAI charges
 ITR verification charges.

52 What is Risk Premium? It has been decided to charge additional Rate of Interest
@0.05% over and above applicable rate of interest on all
fresh Home Loans (all variants). However, this additional
Risk Premium will be waived as an incentive to the
borrower who provide Group Credit Life insurance cover
for the entire tenure of the loan and entire sanctioned
amount

53 What if mortgage of primary If mortgage is not feasible or customer desires that the
security under Home Loan is mortgage need not be insisted upon, Branch can accept
not feasible? security of adequate value in the form of Fixed Deposit,
Life Insurance Policies, Government Promissory Notes,
Shares and Debentures, Gold ornaments, other
immovable property or such other securities as may be
deemed adequate, with the permission of Regional
Head subject to condition/ undertaking from the
borrower that during the currency of advance he will not
sell/ mortgage the same property.

54 Can a customer avail both Yes. There is no restriction to extend benefit of Credit
benefit of facility as Pradhan Linked Subsidy to Baroda Home Loan Advantage
Mantri Awas Yojana & borrowers.
Baroda Home Loan
Advantage?

55 Can NRI be considered under NRIs can be considered provided they are eligible under
PMAY CLSS? the Scheme guidelines and are also in compliance with
other GoI/RBI rules, if any, applicable to NRIs.
56 What happens when the In such cases, the subsidy is to be recovered and
subsidy has already been refunded to the Central Government.
disbursed, but due to certain
reasons, the construction of
the house is stalled?

57 What happens when In such cases, the subsidy is to be recovered and

Outstanding of Home Loan refunded to the Central Government.
became NIL or closed before
the disbursement of subsidy
by Central Nodal Agency?

58 Can we consider Pension If applicant/co-applicant is retired/VRS from defence

income for arriving forces or any other job and thereafter employed/engaged
FOIR/Repaying capacity of in business/profession, in such cases, pension income may
applicant/s? also be considered for eligibility purpose.

59 What guidelines to be In case of employee of marine lines/navy/sailor/merchant

followed for considering navy/ as other such services, the employees usually
break in service/income if render their services in sea and also lives on land at
applicant/co-applicant regular intervals. This situation should not be treated as
engaged in marine lines? break in service. Further, in such cases, salary of
employee differs during time spent on land and time
spent in sea. Therefore, for the purpose of calculation of
emoluments, average salary (total income in 12
months/12) to be considered.
60 What treatment a credit Any credit available in the linked SB a/c at the end of the
outstanding in saving day will be counted for credit in linked Home Loan account
account linked with Baroda and will not attract any interest in saving account.
Home Loan Advantage
Account gets?
61 What is Baroda Home For financing the miscellaneous costs related with the
Suvidha Personal Loan? purchase of Home like cost of insurance, registration cost,
stamp duty, goods & service tax and club membership
fee, etc.
62 What is the age criteria of Maximum age can be considered upto 70 years with
the applicant/co- certain conditions.
applicant/s (whose income
are considering for
eligibility)?

63 Did Free Personal Accident No, Free Personal Accident Insurance cover will be
Insurance cover will be available to the borrowers for Home Loans sanctioned
available to all Existing w.e.f. 01.04.19 in amalgamated Bank.
Home Loan Borrowers of
Dena Bank & Vijaya Bank?

64 Did Branches need to obtain No, the accounts will be automatically covered under free
insurance cover or intimate group personal accident insurance from Day 1 of opening
any office for covering the the account in Finacle w.e.f 01.04.19
Home loan accounts into
Group Personal accident
insurance
65 Did personal accident cover Yes. The free personal accident insurance is an additional
is available to the borrower benefit policy provided to the customers
who has availed Group credit
life cover on the loan.