Acknowledgement

"Sometimes our light goes out

But is blown into flame by another human being.

Each of us owes deepest thanks

To those who have rekindled this light"

No work is a single man’s effort. Cooperation, guidance and coordination are required at

various levels for the successful completion of a project.

I take this opportunity to express my gratitude to all those people who have been instrumental

in successful completion of my project. I am particularly indebted to Mr.shashi mohan

sharma (branch manager, bank of rajasthan ltd.) for them helpful guidance, comments and

suggestions on earlier reports and throughout my project.

I am also grateful to the respondents who filled my questionnaires and helped me in gaining an

insight of “bank of rajasthan limited as a brand in the Indian market. Their enthusiastic

feedback has given my project a direction. All errors, if any, in the project are my sole

responsibilities

I would also like to express my gratitude towards my parents and friends, who have always

been my source of inspiration and motivation.

(BHOMA RAM)

Industry Snapshot

The antiquated Indian banking system has its roots in the nineteenth century. The character and

structure of the system has, however, changed substantially since 1969, when the major banks

were nationalized. Prior to nationalization, banking was concentrated in urban areas. It was

clear that a better banking system was needed to promote the economic goals of the new Indian

state. Rural markets for industrial goods could not be developed so long as money lenders,

charging usurious rates of interest, were the main source of rural credit. Moreover, the 'green

revolution' depended on farmers finding substantial sources of credit to pay for fertilizers and

hybrid seeds.

Since the mid-1970s, there has been a spectacular growth in the spatial distribution of bank

branches and in the size of their deposits and advances. According to experts in banking this

transformation has no parallel anywhere in the world. After nationalization, there was also a

change in recruitment policy. For the first time, the doors of the banks were opened to

everyone, irrespective of family status, caste, community, religion or gender. Recruitment was

placed on a more systematic basis, with merit assessed by aptitude tests conducted by an

external agency in a relatively impartial manner.

As the size of the banking sector increased, the industry became difficult to manage. Computer

technology offered a possible solution. In India, a small number of industrial houses and a few

educational, research and development institutions started using computers in the early 1960s.

During the late 1960s and 1970s, service-oriented industries such as airlines, railways and

insurance companies introduced computers to 'improve their functioning' and 'to provide better

customer service’. Banks in India did not, however, introduce computers on a large scale

because of the fear that these would result in retrenchment and unemployment.

For a long time Indian banks faced very little competition and operated in a protected

economy. Thus no long-term policy or perspective for the banking sector was formulated: it

was simply treated as part of the public sector. This is now changing. Well-computerized

foreign banks are beginning to compete seriously with the nationalized banks. They aim at a

profitable and wealthy part of the market and, in contrast to the nationalized banks, do not

recognize any social responsibilities to small account holders or to a rural and semi-urban

clientele.

The banking and financial services Industry in India is in a state of inevitable and rapid

transition. The market for banking products and services has become more competitive than

ever before. With the steady fall in interest rates over the last two years, customers are looking

for alternate avenues for savings and investments such as pension funds, mutual funds, life

insurance products etc. Furthermore, interest margins and hence revenue opportunities have

become very thin driving banks and financial services companies to look for lending

opportunities where intrinsically the delinquency rates on loans are low and where the risk can

be spread across a large base of customers. Simultaneously, a rapidly growing middle class,

with an enormous appetite to borrow from Banks for a better lifestyle, has given banks and

financial services companies an opportunity like never before to finance the demand side of the

Economy. 

The multinational banks and some of the new private sector banks in the country have seized

the opportunity very well. The public sector banks and the old private sector banks, who

command over 80% market share in the banking industry, must seize the opportunity in a big

way and respond aggressively to market demands if the growth in Retail Banking has to be

accelerated in the country.

To be successful in Retail Banking, banks will need to revamp their business model to (a) build

a large volume, highly scalable operation, (b) package and deliver products rapidly in a

dynamic market, (c) leverage effectively on multiple delivery channels (branch, internet,

ATMs etc.) with a view to contain the cost of operations (d) build collaborative relationships

with providers of related financial products and services and move towards converting the

network of bank branches into ‘financial supermarkets’.

Banking sector in India is devided in

Central Bank Reserve Bank of India

Nationalized

Banks

State Bank of India · Allahabad Bank · Andhra Bank ·

Bank of Baroda · Bank of India · Bank of Maharashtra ·

Canara Bank · Central Bank of India · Corporation Bank ·

Dena Bank · Indian Bank · Indian Overseas Bank · Oriental

Bank of Commerce · Punjab & Sind Bank · Punjab

National Bank · Syndicate Bank · Union Bank of India ·

United Bank of India · UCO Bank · Vijaya Bank · IDBI

Bank

Private Banks Axis Bank · Bank of Rajasthan · Bharat Overseas Bank ·

Catholic Syrian Bank · Centurion Bank of Punjab · City

Union Bank · Development Credit Bank · Dhanalakshmi

Bank · Federal Bank · Ganesh Bank of Kurundwad · HDFC

Bank · ICICI Bank · IndusInd Bank · ING Vysya Bank ·

Jammu & Kashmir Bank · Karnataka Bank Limited · Karur

Vysya Bank · Kotak Mahindra Bank · Lakshmi Vilas

Bank · Nainital Bank · Ratnakar Bank · SBI Commercial

and International Bank · South Indian Bank · Tamilnad

Mercantile Bank Ltd. · YES Bank

Multinational

Banks in India

ABN AMRO Bank, Abu Dhabi Commercial Bank, ANZ

Grindlay Bank, Bank of America, Bank National Paris,

CITI Bank China Trust Commercial Bank, Hong Kong &

Shanghai Banking Corporation, Standard Chartered Bank,

Taib Bank

Regional Rural

Banks

South Malabar Gramin Bank

Services NEFT · CashTree · Cashnet

Introduction

Overview-

The Bank of Rajasthan Ltd., a leading Private Sector Bank, having branches all over India

with prominent presence in Rajasthan having specialised forex and Industrial finance

branches.

The Bank is committed to the highest level of customer satisfaction through personalised and

efficient services.

LOGO     

The logo consists of the historic Victory Tower of Chittorgarh,( Rajasthan) the rising sun and

sand-dunes in a circular shape of coin.

The Victory Tower, a symbol of warrior land of Rajasthan where the Bank was founded. The

Tower denotes the supremacy, the splendor and being outstanding .

The rising Sun symbolises hopes, unlimited scope for progress  and growth. The Sand

Dunes  represent the state  of Rajasthan where the Bank came in to being.The Coin denotes

economic activity, particularly banking.

Origin & Growth

The Bank Of Rajasthan Ltd. was established at Udaipur, the city of lakes in Rajasthan on the

auspicious day of Akshya Tritiya on May 8, 1943. The credit for the birth of the Bank goes to,

the then finance minister of the erst-while Mewar Government, late Shri Rai Bahadur P.C.

Chatterji, who persuaded 

the Mansingka brothers of Bhilwara for establishing a joint stock bank with its registered

Office at Udaipur.                              

The Bank was established with an initial capital of Rs.10.00 lacs. Late Seth Shri Govind Ram

Seksaria, an eminent Industrialist of the country, was the founder Chairman. The first Broad of

Directors comprised such men of eminence as Shri Rai Bahadur Seth Rameshwarlal Ji

Duduwala, Seth Shri Subhhag Mal Ji Lodha besides the Mansighka brothers, Seth Shri Pusa

Lalji Mansighka and Seth Shri Damodar Lal ji Mansighka. The other members of the board

were Major Rajadhiraj Amar Singhji of Banera and the then Accountant General of Mewar,

Rai Bahadur lala Sukhdayalji.

In line with the contemporary practice of naming the bank after the location or princely state,

the suggested names for the bank were Bank of Mewar State or Bank of Udaipur. The

promoters, being very clear in their vision, expressed the view that the word 'Rajasthan' will be

more advantageous in future for expanding activities in other princely states since under the

new constitution grouping of the then local princely states was expected under one umbrella.

As now is history, the individual princely states were merged under the final name for the state

- Rajasthan. The naming of the bank, The Bank of Rajasthan Ltd., glaringly reflected the

foresight of the promoters

Landmark

In the year 1948, the Bank was included in the second schedule by the Reserve Bank of

India.

In 1955, the Bank was given license under Section 22 of Banking Regulation Act,1949

by the Reserve Bank Of India (RBI).

The Bank was among the first banks to take banking at the door step of customers by

introducing the concept of mobile branches, when it opened its first mobile branch in

Jaipur on 5th August, 1960.

The Bank received license to deal in foreign exchange in 1973 from the RBI.

The Bank was among the first banks in the private sector to have been assigned Lead

Bank responsibility which it shared with an associate of State Bank of Bikaner &

Jaipur in Udaipur District.

The Bank became one of the earliest banks in private sector sponsoring any rural

(Gramin) bank, when it established the Mewar Anchlik Gramin Bank in Udaipur

District in Rajasthan on 26th January, 1983.

In 1993, the Bank received authority to deal as class-I merchant Banker.

The currency chest of the Bank was also started in the year 1993 .

Bank's 1st, 100th, 200th and 300th branches were opened in the year 1943, 1973, 1980

and 1997 at Bhilwara, Barmer, Jodhpur(Sardarpura) and Cochin respectively.

The bank achieved a unique distinction when its C-scheme, Jaipur branch qualified for

ISO-9002:94 certification (quality system certified) by DET NORSKE VERITAS

(DNV) LONDON U.K in 1997.

The Bank started its first ATM services in the series of Quality services to its customers at C-

Scheme Jaipur branch from 1st July 1998

.

\

MANAGEMENT TEAM

Shri Narendra Kumar Agrawal - Addl. Vice President (Credit)

Shri Surendra Chelawat - Addl. Vice President (Central Office,Jaipur)

Shri Rajneesh Kumar Agrawal - Company Secretary (Addl.Vice President)

Shri Kailash Chandra Sharma - Principal (Staff College)

Shri Mahendra Mohan Gupta - Sr.Asstt.Vice President (Asset Mgmt.& Law)

Shri Suresh Kumar Nainani - Sr. Asstt.Vice President (op&bd)

Shri Bhagwan Sahay Gupta - Sr.Asstt.Vice President (Dmat-GI-Franking-

Mut.Fund,On-line Trading)

Shri Om Prakash Tela - Sr.Asstt.Vice President (Credit)

Shri K.M. Garg - Sr.Asstt.Vice President (AMD & Law,Accounts & Taxation)

Shri Ganpat Raj Singhvi - General Manager (P&HRD & Corporate Office )

Shri Kishore Kumar Khandelwal - Dy. General Manager (Exec.Secretary to the

M.D.)

Shri Pradeep Kumar Agrawal - Dy.Gen.Manager (Cap.Raising & Equ.Dilution)

Dr. Navratan Mal Bachhawat - Asstt.Vice President-II (Prio.Sect.& Retail Bank'g)

Shri Sudershan Khabya -Asstt.Vice President- II (Law and Recovery)

Shri Bal Kishan Goyal - Asstt.Vice President-II (Inspection & Audit)

Shri Shakti Prasad Mohanty - Asstt.Vice President-II (Info.Tech.)

Shri Gajanand Gupta - Asstt.Vice President-II (Credit)

Shri Brij Mohan Gupta - Dy.Gen.Manager (Treasury & Investment)

Shri Suresh Chand Jain - Dy.Gen.Manager (Branch Expansion & Premises)

Shri Sunil Gehlot - Dy.Gen.Manager (C.O.Administration)

Regional Heads

Mumbai Region - Shri Ved Prakash Goyal - Addl.Vice President

Kota Region – Shri Prem Chand Ajmera - Sr.Asstt.Vice President

Bikaner Region – Shri Mali Ram Sharma - Sr.Asstt.Vice President

Kolkata Region – Shri Dinesh Kumar Garg - Sr. Asstt. Vice President

Bangalore Region - Shri Gopal Narain Mathur - Sr. Asstt.Vice President

Jodhpur Region – Shri Uttam Chand Agarwal - Sr. Asstt.Vice President

Jaipur Region - Shri Bajrang Bahadur Pandey - Sr. Asstt. Vice President

Bhilwara Region - Shri Bharat Singh Panwar - Asstt.Vice President-III

Delhi Region - Shri Harish Kumar Sharda – Asstt.Vice President-II

Chandigarh Region - Shri Rajinder Singh Kohli - Asstt. Vice President-II

Udaipur Region – Shri Shiv Charan Maheshwari - Asstt.Vice President-II

Indore Region - Shri Om Prakash Samaria – Asstt.Vice President-II

OUR BUSINESS

The Bank of Rajasthan, with its stronghold in the state of Rajasthan, has a nationwide

presence, serving its customers with a mission of " together we prosper " engaging actively in

Commercial Banking, Merchant Banking, Auxiliary services, Consumer Banking, Deposit &

Money Placement services, Trust & Custodial services, International Banking, Priority Sector

Banking, Depository.

Board

of

Directors

Shri Niraj Tayal

Shri P. N. Bhandari

Shri Maghraj Calla

Shri K. N. Bhandari

Shri Ved Prakash Khurana

Shri Pran M. Aggarwal

Shri Sanjay Kumar Tayal

Shri K.G. Kurian

Shri Vipul Dhirajlal Mehta

Shri Shekhar Bhatnagar

Shri A. Madhavan

Shri S.B. Mathur

Shri P.L.Ahuja- Managing Director & CEO

Vision, Mission & Value

VISION

Technologically Strong

Financially Sound

All India Presence

Personalized Services

Value Maximization

Employee Satisfaction

Skill Maximization.

MISSION

Be the Most Preferred Bank

Leveraging Technology

Develop Lifelong Relationship

With Customers

&

Create Value for

Employees and Stakeholders.

VALUES

" Together We Prosper"

Quality Banking

The bank has achieved the certification (ISO 9002:94) in Standardization in its services at C-

Scheme Branch, Jaipur

QUALITY POLICY To believe in total customer satisfaction by providing them, the value

added quality services right time, first time every time 

QUALITY OBJECTIVES

To promote customers focus amongst employees;

To continuously assess customers' needs and work for enhanced customer satisfaction;

To follow established procedures and work instructions;

To implement effective control systems for prevention of errors/frauds;

To continuously train people to upgrade knowledge, skills and orient attitudes to

motivate them to achieve excellence.

To work systematically and promptly for effective and efficient services comparable

with best of benchmarks in banking

To maintain safe, clean and healthy environment;

To review the system & procedure continuously by Business Process Re-engineering.

Product & Services

DEPOSIT & MONEY PLACEMENT SERVICES

1. Saving Bank Account

"Savings Bank Account " is deposit providing any time liquidity with interest earnings.

Question Answer

Who can open

the account?

An Individual singly or jointly, HUF, Trust, Societies, Associations

etc. can open a savings bank account with a prescribed minimum

balance. A minor who has attained the age of 10 years can also open

a savings bank account independently.

Facility The account under the scheme facilitates acceptance and withdrawal

of deposits in and making payment by cheques.

Interest Attract interest , presently @ 3.5% p.a. paid at half yearly interval

Tax Deduction

at Source.

 No

Standing

Instruction.

 Accepted

Nomination.  Accepted

Transferability

option

 Available within Bank's Branches.

2. CURRENT DEPOSITS ACCOUNTS

"Current Deposit Account " is demand deposit and is meant for businessmen, firms,

companies, corporations, trusts and individuals with no restriction on number of drawals.

Question Answer

Who can open

the account ?

An Individual singly or jointly, Sole proprietary business

concern ,Partnership or joint stock Company, HUF firms, Limited

Companies, Trusts, Association, Local Bodies, Societies, Executors

and Administrators, Govt./Semi Govt. Undertakings, Agents on

behalf of principal etc. can open the account under the scheme with a

prescribed minimum balance.

Interest  No interest payable

Nomination Accepted in the accounts of individual(s) and sole-proprietorship

concerns only.

Standing

Instruction

 Accepted

Transferability

option

 Available within Bank's Branches

Factsheet

For 61 years, it has been our endeavor to achieve the growth on consistent basis (see Table).

With 457 branches nationwide, 1 extension counters and 5 service branches, the Bank is the

largest private sector bank in North India.

Our Growth over Five Decades: (Rs.in Millions)

  Dec.50 Dec.60 Dec.70 Dec.80 Mar.90 Mar.200

4

Deposits 15.05 53.63 196.05 1256.48 7204.39 74058.9

Advance

s

4.96 26.33 115.44 720.06 3642.31 24316.3

Capital 0.52 0.92 2.00 3.00 17.50 1075.7

Reserves 0.18 0.80 2.31 8.42 82.55 2219.1

No.of

Branche

s

21 36 70 210 274 354

*including Capital Reserve

Features of BOR Tax Savings Term Deposit Account – 2008

(BTSTD account - 2008)

Name of Account "BOR Tax Savings Term Deposit Account - 2008

(BTSTD account - 2008)"

 

Eligibility Individuals - Singly or jointly (Jointly by two adults or

one adult and one minor payable only to either or

survivor)/ Hindu Undivided Family (HUF) for

domestic as well as NRO accounts.

Minimum &

Maximum Deposit

Amount

Minimum Rs. 100/- or multiple thereof subject to a

Maximum of Rs. 1.00 lacs per year.

Interest Rate These Deposits will carry interest @ 9.50% presently

(w.e.f.21/07/2008) . The change in interest rate of these

deposits will be advised separately alongwith the

change in interest rates on normal deposits. Benefit of

additional interest to staff members and Senior

Citizens will be allowed as in existing scheme.

Payment of Interest Interest may be paid either on maturity or on

quarterly/monthly basis as per option given by the

depositor.

Period of Deposit The deposit will be accepted for a fixed term of 5 years

commencing from the date of the receipt.

Note: In the event of death of the depositor/ joint

depositors the nominee will be entitled to encash the

Term Deposit at any time before or after the maturity.

In case of such payment before maturity the rate of

interest payable will be the rate applicable on the date

of deposit for the period for which the deposit has

actually run.

Tax Benefit Deposit will be treated as an investment U/s 80(C)

within an overall limit for investment of Rs. 1.00 lacs

p.a. and will be available to the first named person in

case of deposits in joint names.

TDS TDS will be deducted as in case of other term deposit

accounts

Nomination facility Nomination facility will be available as in case of

normal deposit accounts. However, no nomination

shall be made in respect a term deposit held by or on

behalf of a minor.

Pledge of term deposit The term deposit shall not be pledged for securing a

loan or overdraft or as security for any other asset or

as primary or collateral security.

Special Condition 1. The term deposit receipt shall bear the name,

address, permanent account number and

signature of the assessee depositor.

2. The term deposit can be transferred from one

branch to another branch of the bank but it

can not be transferred to another bank.

3. In case no instruction for renewal on maturity

are given by the depositor/assessee the renewal

wll be done treating the deposit as a normal

Term Deposit.

Deposit Scheme

Rates of Interest on Term Deposits (Domestic)

w.e.f  25.08.2008(Rate in % p.a)

PERIODRate of

Interest

Annualized Yield at the minimum stage of

the slab

7 Days to 14 Days* 4.00% 4.00%

15  Days to  45 Days 5.25%  5.25% 

46  Days to  90 Days 5.50%  5.50% 

91 Days to 120 Days 6.00%  6.00%  

121 Days to 179 Days 8.00% 8.00%

180 Days to 364 Days 9.00% 9.10%

1 year to 2 years 10.60% 10.85%

Above 2 years to 3 years 9.50% 10.33%

Above 3 years 9.25% 10.52%

Minimum Rs. 1.00 Lacs

Additional interest @ 0.35% over the normal rate for maturity period of 1 year to 2

years and @ 0.50% over the normal rate for other maturity periods will be given to

resident senior citizens.

Additional interest @ 1.00% over the normal rate will be given to members / retired

members of staff. However, in case of senior citizens who are also retired members of

staff, only the benefit of 1.00% additional interest payable in capacity of retired

member of staff will continue.

Penalty for premature payment as well as premature renewal of term deposits accepted

and renewed on or after 04.12.2006 will be charged in the form of interest @ 1.00%

below the rate applicable for the period for which the deposit has remained with the

Bank as per Circular No. 58/Dep/20/8121/2006 dated 02.12.2006. Other terms and

conditions stated in the previous circular remain the same.

It may further be noted that above mentioned rates of interest are not applicable on

Interbank deposits. Branches are advised to approach T&I Deptt. for acceptance /

placement of inter bank deposits and should continue to be guided by circular No.

51/Dep/15/5609/99 dated 14.12.1999 for such deposits.

Branches are advised to approach Shri B.S. Gupta, Product Head(Deposits), Corporate

Office, Mumbai for quoting / bidding higher interest rates on bulk deposits of Rs. 50 lacs &

over. However, in cases where the deposits have been accepted at rates higher than the card

rates, the interest in case of premature payment should be paid at the applicable card rate

for the period for which the deposit has actually run with penalty as applicable and higher

preferential rate should not be paid.

Commercial banking :

To trade and industry :-

To meet different needs of the customer, the Bank provides various

services (illustrative only, conditions apply).

Fund Based :-

1. Overdrafts in Current Accounts (O.D.)

2. Cash Credits (C.C.)

3. Loans

4. Bills purchase (BP) and Usance Bills Discounted (UBD)

5. Packing Credit Loans (PCL)

6. Foreign Bills purchase and Discounted (FBD/FUBD)

7. Import/Export Loans

8. Credit Facility to SMEs Sector

Non-Fund Based

1. Letter of Guarantee (L.G.)

2. Letters of Credit (L.C.)

3. Deferred Payment Guarantees (DPG)

Loan

Loans are provided against term deposits of the Bank, Govt. & stock exchange

securities, and for the purchase of machinery, consumer durables, houses, vehicles etc. Loans

are repayable on instalments basis.

Special schemes on attractive terms & condtions are in operation for purchase/

construction/repairs of houses to all, and vehicle loans / equipment finance to doctors and other

professionals.

:------ RATES OF INTEREST on various types of credit facilities (subject to change from

time to time)

Benchmark Prime Lending Rate (BPLR) (w.e.f. 01.08.2008) 16.00%

 

Housing Loan to individuals (Under Fixed/ Floating Interest Rate Scheme)

(w.e.f. 01.08.2008)

Rate of Interest upto Rs. 30.00 lac

Repayble Upto 5 Years  Above  5 Years

Upto 10 Years

Above  10 Years

Upto 15 Years

Above  15 Years

Upto 20 Years

  Rate of

Interest   

       

(Fixed) 12.50 % 12.75 % 13.00 % 13.50%

(Floating) 11.50( RPLR +

1.50) %

11.75 ( RPLR +

1.75) %

12.00( RPLR +

2.00) %

12.50 ( RPLR +

2.50) %

   

Rate of Interest above Rs. 30.00 lac

Repayble Upto 5 Years  Above  5 Years

Upto 10 Years

Above  10 Years

Upto 15 Years

Above  15 Years

Upto 20 Years

  Rate of

Interest   

       

(Fixed) 13.00 % 13.50% 14.00% 14.50%

(Floating) 12.00( RPLR +

2.00) %

12.50 ( RPLR +

2.50) %

13.00( RPLR +

3.00) %

13.50 ( RPLR +

3.50) %

   

   

Consumer Loan(Personal Loan)(w.e.f. 01.08.2008)

(3% + BPLR)

19.00 %

 

Vehicle/Car Loan (4-Wheelers) (w.e.f. 01.08.2008)

For Salaried individuals (Govt. PSU & other reputed

companies) & for Doctors & other Professionals. (0.50%

+BPLR)

16.50 %

 For Self employed & other individuals not classified  

otherwise (1.00%+BPLR)

17.00 %

 

Education Loan (w.e.f. 01.08.2008) 16.00 %

OTHER CHARGES :  

Home Loan:  

1. Processing Charges:  

(a) Loan Upto Rs. 2.00 Lacs 0.50 % of

sanctioned

Loan Amount

(b) Loan Over Rs. 2.00 Lacs 1.00% of

sanctioned

Loan Amount

  2. Foreclosure Charges 2% of prepaid

Amount

Consumer Loan:  

      Processing Charges: 2.00% of

sanctioned

Loan Amount

      Foreclosure Charges 2% of prepaid

Amount

Vehicle Loan:  

      Processing Charges: 1.00% of

sanctioned

Loan Amount

      Foreclosure Charges 5% of prepaid

Amount

CREDIT FACILITY TO SME SCHEME

1. SME Includes:-

I. Tiny Industries:- having investment in plant and machinery up to Rs. 25.00 lac.

II. Small Scale Industry:- having investment in plant and machinery up to Rs. 100.00 lac and

Rs. 500.00 lac in certain specified items under hosiery, hand tools, drugs, pharmaceuticals and

stationary items and sports goods or any other as may be notified by the Central Govt. from

time to time as eligibility criterion for SSIs.

III. Medium Enterprises:- having investment above SSI ceiling (i.e. Rs. 100.00 or Rs. 500.00

lac as above) and up to Rs. 1000.00 lac in plant and machinery.

IV. Small Service & Business Enterprises:- Industries related service and business

enterprises with investment up to Rs. 10.00 lac in fixed assets excluding land and building are

eligible for benefits of SSI Sector.2. Processing of Application:- Application received in the

prescribed format (complete in all respect) will be disposed off as under

I. Up to loan of Rs. 25000.00 ------ Within One Week.

II. Above Rs. 25000.00 and up to Rs, 50000.00 -- Within Two Weeks

III. Above Rs. 50000.00 ---- Within Three Weeks.

3. Collateral Security :- Loans up to Rs. 5.00 lac can be considered without collateral security

provided the applicant has good track record and financial position.

4. Composite Loan:- Composite Loan can be sanctioned up to Rs. 100.00 lac for SSI units.

5. Rate of Interest:-

i. Up to Rs. 2.00 lac. -- 11.00%

ii. Above Rs. 2.00 lac -- 11.50%

to Rs. 10.00 lac

iii. Above Rs. 10.00 lac

to Rs. 100.00 lac-- In the range from BPLR ( The BPLR w.e.f. 01.07.2008 @ 15.00% ) to

BPLR + 2% (As per Credit rating of borrower as per rules of Bank)

Note:- Rate of interest is subjected to change from time to time.

Debt Restructuring Mechanism : Small and Medium Enterprises (SMEs)

1. SME Includes :- Tiny Industries, Small Scale Industries (SSI),

    Medium Industries (ME) and Small Service

    & Business Enterprises.

     

2. Eligibility Criterion :-  

  Following viable or potentially viable SMEs are eligible

  a) All non-corporate SMEs irrespective of the level of dues

    to bank.

  b) All corporate SMEs, which are enjoying credit facilities

    from a single bank, irrespective of the level of dues to

    the bank.

  c) All corporate SMEs, which have funded and non-funded

    outstanding up to Rs.10 Crores under multiple /

    consortium banking arrangement.

  Accounts involving fraud and malfeasance and / or classified, as

  "Loss Assets" will not be eligible for restructuring under these guidelines.

     

3. Viability criteria :- The unit should become viable in 7 years and the

    repayment period for restructured debt shall not exceed

    10 years.

   

4. Restructuring Parameters :-

  a. Minimum ROCE (Return on Capital Employed)

    equivalent to 5 years G. Sec. + 3%.

  b. Minimum Average DSCR (Debt Service Coverage

    Ratio) should be more than 1.25 and in every year

    it should be more than 1.

  c. Benchmark gap between IRR (Internal Rate of Return)

    and COF (Average Cost of Funds) should

    be at least 1%.

5. Implementation Period :-

  60 days from date of receipt of request / reference.

   

6. Extent of Relief / Concession / Sacrifice :-

  Interest not below the ceilings mentioned as under.

  Working Capital Interest 1.5% below the contracted rate.

Funded Interest Term Loan Interest Free.

Working Capital Term Loan Interest 1.5% below the contracted rate.

Term Loan Concession in Interest not more than 2% (not

  more than 3% in case of tiny / decentralized

  sector units) below the contracted rate.

Additional Loan / Contingency

Loan Assistance

Interest not below 1.5% from BPLR of Bank

(Presently BPLR of Bank applicable from 01.07.2008

is 15%)

     

In no case sacrifice in principal and simple interest shall be considered.

Note:- Rate of interest is subjected to change on review of company's performance and

the prevailing interest rate scenario after every 3 years from the date of sanction.

CREDIT FACILITIES

The Bank has variety of credit schemes specially suitable to individuals based on the needs,

personal repayment capacity (illustrative only, conditions apply).

To Individual etc apart from credit facility to trade, industry, export and priority sector

1. Housing Finance : It is provided to an individual singly/jointly for

the purpose of construction of house/ purchase

of ready built house/land / extension of

existing house/ repair of house. The amount of

finance depends upon the repayment capacity

of the applicant. (Salient Features)

2. Car Finance : It is provided to an individual singly/jointly,

firms etc. for the purchase of new brand car for

the purpose of personal/ professional/ business

needs. The amount of finance depends upon

the repayment capacity of the applicant.

3. Loan for    consumer

durables :

It is provided to an individual singly/jointly,

firms etc. for the purchase of consumer

durables such as TV, Fridge, Air Conditioner,

Computer etc. for personal needs. The amount

of finance depends upon the repayment

capacity of the applicant. 

4. Loan against NSC's

/LIC policies etc. :

It is provided for the purpose of meeting any

contingency/ personal needs. The amount of

finance depends upon the repayment capacity

of the applicant.

5. Loan against Shares : It is provided to an individual singly/jointly,

firms etc. against the shares of companies. 

6. Loan against

Deposits :

It is provided against the Term deposit of the

bank. 

7. Educational loan It is provided for higher studies. 

NOTE: ON ALL ABOVE LOANS, THE INTEREST IS CHARGED ON REDUCING

BALANCE METHOD.

Finance concept :-

Finance is the blood of business. It is as important for industry and commerce as lubricant for

wheels, marrow for bones and blood for arteries. In modern times, no trade, industry or

commerce can operate its activities without finance. Finance is needed for establishing,

developing and operating the business efficiently. Without proper financing, even the best

project remains a futile exercise and if the project is put in to operation, later on many problem

crop up in its execution and control. Actually, sometimes it is not the inadequate finance that is

the cause of failure of a business, but the mismanagement of resources that is ultimately

responsible for it. The survival and growth of a firm is possible only if it is utilizes its funds in

a optimal manner. Therefore, it is correct to say that without adequate finance no business can

survive and without efficient financial management no business can prosper and grow. Hence,

the success of a business depends on proper supply of finance and its efficient management.\

Bank of rajasthan limited provides the loan. These are given below:-

(1) mortgage loan :-

first of all, before providing the mortgage loan, we calculate the rating

(as prescribed structure which is provided the bank). If the customer rating is more than 50

than it is considered that loan can issue by the bank. After then we calculate the average

income of last of two year and divide by the 12 for getting monthly income. After getting

monthly income,it is considerd that loan payment capacity is fifty percent,then it is decided

that how many loan should be issued. The rating Performa is as follows :

Mortgage loan scheme against property for individual

1. Eligibility :- individuals( against self property/ properties or property/

properties owned by his spouse, children) HUF concern (against self owned

property/ properties or property /properties by owned by karta, major

coparceners, his /her their spouse, children)

2. Amount :- maximum loan up to rs.100 lacs. Additional advance against

same property can be allowed to same or other party if there is suuffcient

residual value i.e. remaining value after advance against mortgage loan is

sufficient to take of other advance. Property where housing loan is already

availed can also be considerd for loan under this scheme if residual value is

sufficient and eligibility criterion is complied with.

1. Purpose :- personal needs.

2. Nature of advance : by way of loan or overdraft

3. Security :- equitable mortgage of the property for which the advance is

sanctioned. It includes:

a) residential /commercial immovable property ;

b) free hold land (vacant plot);

c) leasehold land (vacant plot) subject to permission of lessor (viz.

respective municipal corporation, development authority etc.) is

obtained

d) leased/ rented property provided owner & lessee/ tenant agree for

assignment of lease income/ rent in favour of bank for direct receipt

of the same in the loan/ OD a/c.

4. Guarantee :-

personal guarantee/ guarantee of owner (s) of the (in case property is owned &

occupied by person other than the borrower / applicant ). In case of HUF-

personal guarantee of karta, major coparceners.

5. interest :-

For overdraft : variable, at 1% above BPLR(monthly rests) irrespective of

sanctioned amount i.e. 14.5 % at present .

For loan :- fixed at BPLR (monthly rests) irrespective of sanctioned amount

i.e. 15% at present.

6. penal interest :- 4% above the normal rate applicable on the defaulted

amount.

7. Foreclosure charges :- 2% of prepaid amount

(10) amount of advance :- four times of the average of gross yearly income as

declared in the income tax return of the immediately completed past two

financial years or 70 % of the property value ,assessed by the bank’s approved

valuer or assessed by the branch manager as per the spot visit report

whichever is lower.

( in case of salaried / self – employed / professionals/ businessmen, the income

of spouse and depreciation can be clubbed for arriving at the eligible loan/

overdraft amount.in such cases the spouse should become co-borrower or his /

her personal guarantee should be obtained.)

(11) repayment:-

(a) Loan – maximum 180 equated monthly installments.

(b) Overdraft – repayable on demand subject to yearly review. Interest is to

recovered on as and when debited basis. Annual review to be based on

income tax, audited balance sheet (wherever applicable) business statistics,

conduct of account, earning etc. the utilization of the limit should be at

least 80%, otherwise commitment charges @ 2% on the unutilized portion

shall be levied.

In case of loan/ overdraft facility the annual repayment obligation is

subject to following condition :

1.In case of professional / self-emlpoyed personal / businessmen / entrepreneurs etc. the

annual repayment obligation (including all other repayment commitments) should not

exceed 75 % of the gross yearly income.

2. In case of loan to salaried class, the total future yearly obligation ( including all other

repayment commitments) of the borrower should not exceed 60 % of the gross yearly

salary of the borrower.

Estimated interest amount for full year on sanctioned OD amount will be considered as

annual repayment obligation in case of overdraft facility .

12. Procession charges :-

a. For loan :- @ .50% of plan sanctioned (one time)

b. For overdraft :- @ .50% p.a. on overdraft sanctioned limit and 0.50 % for the

subsequent renewal every year for each calendar year basis.

Out of pocket expenses ( valuation, advocate fee, documentation, stamps, inspection

charges etc.) to be recovered from the borrower on actual basis, before release of facility.

Insurance :-

a. insurance of immovable property based on value of land and

quality of construction.

b. Possibilities of obtaining insurance policy (term insurance policy /

endownment policy ) of the life of borrower for equivalent amount

of loan. The policy to be assigned in favour of the bank. An

undertaking to renew the insurance policy/ pay premium directly

by bank by debiting the loan / OD a/c shall be taken.

(13) Documentation :-

Loan application in prescribed format as accepted in case of retail loan.

Affidavit from the owner of the property that the subject property is

free from all encumbrances, is undisputed and has not been rented/

leased out and is self eor their spouses.

Undertaking from the owner of the property that the property will not

be given on rent /leased out /assigned during the currency of the bank

advance.

Memorandum of deposit of title deeds of the property alongwith

complete chain of original documents,to pass on perfect & valid

equitable mortgage in bank’s favour as per legal opnion of bank’s

advocate .DP notes, letter of waiver(LA-64),letter of guarantee (LA-225),

letter of continuity (LA-5 in case of overdraft facility).

Legal opinion & non-encumbrance certificate of advocate on bank’s

panel and valuation report from bank’s panel valuer at party’s cost.

Loan agreement (same as taken in case of suvidha loan)

For loan – post dated cheques (PDCs) favouring “ the bank of Rajasthan

ltd.” To be obtained.

For overdraft – 3 post dated cheques (PDCs) favouring “The Bank of

Rajasthan Ltd.”

Other document /undertaking i.e. disclosure of default and disclosure to

CIBIL etc.

The security, property under equitable mortgage shall be verified on

yearly basis and a spot visit report to be kept on records. In case of any

changes affecting interest of the bank, corrective measure are to be

taken and reported to regional office.

The advance to individual /HUF will be classified as non- priority sector-

real estate advance.

PERSONAL LOAN :- first of all, before providing the personal loan, we calculate the

rating (as prescribed structure which is provided the bank). If the customer rating is more

than 50 than it is considered that loan can issue by the bank. After then, we calculate the

average income of last of two year and divide by the 12 for getting monthly income. After

getting monthly income,it is considerd that loan payment capacity is fifty percent,then it is

decided that how many loan should be issued. There is some circular of personal loan :-

(1) ELIGIBILITY:-

Salaried individual with permanent service of minimum three years in government,

PSU/MNC,reputed public or private company, professionals like doctors, chartered

accountants, company secretaries, MBAs, engineers etc, self employed other than

professionals, businessmen etc. other individuals not classified like partners or

directors having cash credit accounts of their firms or companies.

(2) INCOME :-

salaried individual :- minimum salary of rs. 7500/-p.m.

self employed / professional/ businessmen / others:- minimum average income

RS. 1.00 lac last three year as per income tax return.

(3) PURPOSE :- To meet personal expenses

(4) AGE :- minimum 24 year, maximum 65 years inclusive of loan period.

(5) LOAN AMOUNT :- in case of salaried individual :- minimum rs.25,000/-

And maximum rs. 10.00 lacs.

Self-employed/ professionals/ businessmen/ other individuals not classified :- minimum

rs.25,000/- and maxamimum rs.15 lacs.

(6) ASSESSMENT OF LOAN AMOUNT: -

salaried individual: - 5 to 12 months salary, subject to the condition that total

deductions including installment of proposed loan should not exceed 50% of the net

salary (i.e. gross salary less p.f. & income tax). The EMI should not exceed 20% of

gross monthly income.

Professional /self-employed persons/ businessmen/other individuals not classified :-up

to 40% to 150% of average annual income of last three years.

Repayment

period

government &

PSU employee

MNC’S reputed

public or

private

company

employees

Professional:

doctors,

charted

accountants,CS,

MBA,engineers

self employed

other than

professional

and

businessmen

&other not

classified

Up ro 12 month 5 month salary 5 month salary 40% of average

annual income

of last 3 years

40 % of average

annual income

of last 3 years

Above 12 to 24

months

7 month salary 7 month salary 80% of average

annual income

80% of average

annual income

of last 3 years of last 3 years

Above 24 to 36

months

9 months salary 9 month salary 125% of

average annual

income of last 3

years

125% of

average annual

income of last 3

years

Above 36 to 48

months

12 months

salary

10 month salary 150 % of

average annual

income of last 3

years

150% of

average annual

income of last 3

years

(7) REPAYMENT PERIOD :- 12 to 48 months

(8) INTEREST RATE :- 15 % to 22% detailed as under :-

Category Type of

borrower

Rate of

interest

Repayment period &

EMI per 10000

1

12 M

2

24 M

3

36 M

4

48 M

Individual Govt. & PSU

employees

3% above

BPLR i.e.

18%

917 499 362 294

MNC/reputed

public or pvt.

Company

employees

4%above

BPLR i. e

19%

922 504 367 299

Professional and

self-employed

Doctors,CA,CS, 5 %above 926 509 372 304

persons MBA,

Engineers etc.

BPLR i.e.

20%

Businessman /

Others/ director

or partner having

cash credit

account with us

A) income

above rs.3 lac

6 %above

BPLR i.e.

21%

931 514 377 310

B) income up to

rs.3 lac

7 % above

BPLR i.e.

22 %

936 519 382 315

INTEREST WILL BE CHARGED AT MONTHLY REST.

(9) SERVICE CHARGE: - 2% loan amount as up-front fee\.

(10) REPAYMENT CHARGES :- 2% of prepaid amount .

(11) DISBURSEMENT :- In the SB/CD account of borrower or as per his instruction .

(12) GUARANTEE :- it is not mandatory . The sanction shall be based on the score the

borrower secures. The sanctioning authority shall be authorized to take decisions in this

regard as per score module .

(13) DEFAULT CONVENENTS :- rs 250/- will be charged if cheques is dishonored for

the first time and 350/- for subsequent dishonours. If 3 installment are defaulted

continuously, recovery action will be initiated. The penal interest shall be levied @ 4 %

above applicable rate on defaulted amount.

(14) DOCUMENTS :-

1. D. P. Note

2. Letter of waiver

3. Loan agreement

4. Post dated cheques of equated monthly for the months the amount is sanctioned

CALCULATOR Housing Loan ( Fixed Rate )

Housing Loan ( Floating Rate ) Consumer Loan Vehicle/Car Loan Education Loan

 "  Interest is on reducing balances "

Housing Loan ( Fixed Rate )

Amount Interest Rates %

      Repayable in ==>

upto 5

Years

Above 5 Years & up to 10 Years

Above 10 Years & up to 15 Years

Above 15 Years & up to 20Years

Upto Rs.  30 lacs 12.50% 12.75% 13.00% 13.50%

Above Rs.  30 lacs 13.00% 13.50% 14.00% 14.50%

Loan Amount  

No of Installments  

     

EMI  

Housing Loan ( Floating Rate )Interest Rates %

Repayable upto 5 Years

Above 5 Years & up to 10 Years

Above 10 Years & up to 15 Years

Above 15 Years & up to 20 Years

30 11.50 (RPLR+1.50)

11.75 (RPLR+1.75)

12.00 (RPLR+2.00)

12.50 (RPLR+2.50)

Above Rs.  12.00 (RPLR+2.00)

12.50 (RPLR+2.50)

13.00 (RPLR+3.00)

13.50 (RPLR+3.50)

 

No of Installments  

 

Consumer Loan

Amount Rates of Interest

19.00%

Loan Amount

No of Installments

       

EMI

Vehicle/Car Loan

Amount Rates of Interest

Salaried Individuals (Govt.PSU & Other reputed companies) & for Doctors & Other Professionals

16.50%

Self employed & other individuals not classified otherwise.

   17.00%

Loan Amount

No of Installments

EMI

Educational Loan

  Rates of Interest

  16.00%

Loan Amount

No of Installments

EMI

SHIKSHA SARATHI

Education loan scheme for higher studies

Objective:-

The scheme aims at providing support to deserving / meritorious student for

pusuing technical/professional higher education in India and abroad.

Criteria for selection:-

Academic performance of student

Income of the family

Scope for securing gainful employment after completion of course

Eligibility:-

For student in India : professional / technical course/medical science/engineering

/architecture /design

Agriculture/ management /computer science /CA/ICWA/law/BDS/veterinary etc.

Research in any of the aforesaid field.

For study abroad : course conducted by CIMA-London /CPA in USA and others

Research in any of the aforesaid subject leading to doctorate/ PhD.

For study abroad: courses conducted by cima- London/ cpa in usa and other.

And all other courses as mentioned in last slide.

Research in any of the aforesaid subject leading to docotorate/phd

Purpose

1. admission and tution fee for the course

2. hostel charges

3. examination fee

4. cost jof books

5. stationary

6. equipments/ instruments

7. travel expenses ( incase of overseas course)

8. library and laboratory.

Type of loan :- term loan

Age limit :- 16 to 40 years

Quantum of loan:

For studies in India: up to Rs. 10.00 lacs maximum

For studies abroad: up to Rs. 20.00 lacs maximum

( the amount of loan will be determined by the bank on the basis of estimates given

by the college/ institutes ( with proper documentary evidence) and repaying capacity of

student/ parent subject to the maximum limit.)

Margin

(1) loan up to rs. 4.00 lacs- no margin

(2) loan above rs. 4.00 lacs-

a) inland studies 5%

b) abroad studies 15%

Rate of interest

At BPLR i.e 14.50%

Penal interest -2% above rs. 2.00 lacs for the overdue amount and period

Security

- Loan up to Rs. 4.00 lacs- no security

- Above Rs. 4.00 and up to Rs. 7.50 lacs : collateral in the form of a satisfactory third

party guarantee.

- Above Rs.7.50 lacs : adequate collateral securities equal to the loan amount consisting

of any one or more of the following :-

Govt. securities, NSC, bank deposit of equivalent value and on mortgage over

immovable property in the bank’s favour.

Third party guarantee supported by charge over immovable assets of value

equal to loan amount acceptable to bank.

Documents

Loan application and appraisal form (PSD 59)

Education loan agreement (student and parent/ guardian)

Letter of guarantee LA-225

Pledge of securities/equitable mortgage of immovable property, where applicable .

Post dated cheques

Disbursement

Disbursement will be made in stages as far as possible directly to the college

or institution. Payment in respect of air-fare, books, equipments etc. will be made direct to the

supplier/authorized travel agent. Hostel charges for student going abroad will be remitted as

per RBI guidelines, issued from time to time.

Repayment

Wherever the income of parent and or student or sufficient to service the loan, the

repayment will commence after one month of full disbursement. In this case loan will

be repaid within 3-5 year in monthly instalments

Wherever the income is not sufficient to service the loan, repayment will commence 6

month after the completion of course or one month after the student starts earning,

whichever is earlier. Interest debited will be recovered from the parents till the

repayment commences.

If the student receives any monetary benefits the same will be deducted from the total

cost.

Processing charges

No processing charges/upfront charges will be collected on educational loan

Insurance coverage

Whole life endowment policy in the name of student and/or parent for the equal amount of

loan be obtained and same be assigned in favour of bank if loan amount is more than rs. 4.00

lacs.

General condition

The loan would be considered on the basis of academic record, net worth and scope for

securing good employment.

The student should submit progress of his/ her performance to the branch on the yearly

basis till he completes the course.

The student will have to produce documentary proof in support of his selection to the

course for which the loan is proposed to be availed.

Advance under the scheme shall be classified under priority sector as hitherto.

HOUSING LOAN

first of all, before providing the personal loan, we calculate the rating (as prescribed structure

which is provided the bank). If the customer rating is more than 50 than it is considered that

loan can issue by the bank. After then, we calculate the average income of last of two year and

divide by the 12 for getting monthly income. After getting monthly income,it is considerd that

loan payment capacity is fifty percent, then it is decided that how many loan should be issued.

HOUSING LOAN – APNA GHAR SCHEME

1. Eligibility:

Any person /group of persons, salaried/ self- employed/ business class/ retired

jointly with employed spouse or son having regular income and capacity to repay installments

of proposed housing loan.

2. Age:

Minimum age: - 21 years

Maximum age:- 70 years ( last installment should mature at the age of 70 years)

[ RH are delegated with powers to relax maximum age of applicant up to 75 years subject to

admitting a co-borrower up to 65 years at the time of maturity of loan ]

3. Income:-

A. salaried individual: any individual who if in permanent service in government/ reputed

companies having a minimum gross salary rs.8500/- P.M.

B. professionals: doctors, engineers, dentist architects, CAs, cost accountants, CSs MBAs

and other professionals having minimum annual average income of last three years-RS.1.00

lac.

c. self employed /business class individuals & other individual not classified above: Minimum

annual average income of last three years- Rs 1.00

[RH are delegated with powers to relax minimum average annual income of first applicant

RS.0.50 lacs for professionals amd self employed /business class individual etc. and of rs

5000/- for salaried class]

Clubbing of income of spouse/sons is permitted if they become co-borrowers

Clubbing of income pf blood relatives (other than spouse/sons) is permitted only if they are

jontly property owner and become co-borrowers)

4. Purpose:-

a. purchase of ready built house/flat,land and construction thereon

b. repairs and renovation

c. shifting/takeover of loan.( Take over of loan availed from other financial

institutions)

5. Quantum of loan :

for purchase of ready built house/flat,land and construction thereon.- maximum Rs.

100 lacs.

For repair and renovation –maximum Rs. 10.00 lacs.

6. rate of interest: RPLR@ 9.50 %

Period of (Interest rate will be charged at monthly rest)

payment

(For loan up to Rs. 30 lac) ( for loan above Rs.30 lacs)

Fixed % Floating % Fixed % Floating %

Up to 5 year 12.00 11.00( RPLR+1.50) 12.50 11.50 (RPLRR+2.00)

Above 5 year

to 10 year

12.25 11.25(RPLR+1.70) 13.00 12.00(RPLR+2.50)

Above 10

year to 15 Yr

12.50 11.50 (RPLR+2.00) 13.50 12.50(RPLR+3.00)

Above 15

year to 20

year

13.00 12.00 (RPLR+2.50) 14.00 13.00 (RPLR+3.50)

7. Switch over cost :-

Switching from the fixed rate to floating rate and vice versa will attract 1.00%

(excluding service tax) of the outstanding amount.

Reset clause : in case of fixed interest rate,reset clause will be applied after interval of

every 3 years.

A) Loan disbursement between 2.08.2005 to 30.11.2005 : difference between BPLR

and applied rate on the day of disbursement be maintained at the time of application of

reset clause.

b) Loans disbursed after 30.11.2005:- difference between RPLR and applied rate on the

day of disbursement to be maintained at the time of application of reset clause.

8. margin :-

20% for loan up to 20 lacs

25% for loan above 20 lacs

9. Documents related to income proof:-

Salaried persons :- latest salary slip (with deduction), form 16 (with IT return), proof of any

other income.

(sanctioning authority can waive the requirement of IT return/ form last three years on case to

case basis. However, form 16/certificate of employer (giving applicant’s annual salary) for last

year be obtained)

Self-employed, professional & businessmen :-

Audited balance sheet, p&l statement , ITreturn [informative about nature of business,

organization, clients, suppliers, employees]

10:- Assessment fo loan amount:-

(A) salaried individuals Up to 36 of monthy gross salary or cost of

project (less 15% margin) whichever in less

Deviations permissible under the delegation

of Hub in-charge/RH

Loan amount up to 48 times monthly gross

salary with out any additional interest.

Loan amount more than 48 and up to 60 times

monthly gross salary with additional interest

of 0.50% by HUB I/C and 0.25% by RH

Loan amount more than 60 times monthly

gross salary with additional interest of

1.00%by Hub I/C and 0.50% by RH

(Gross salary of preceding month betaken in account for calculation)

(B) Professionals, self-employed,

businessmen &other individuals not classified

above

3 times average annual income of last three

ears or the cost of the project (less 15%

margin ) whichever is less.

Deviations permissible under the delegation

of Hub I/C / RH

Loan amount up to 4 times of annual average

income without any additional interest.

Loan amountmore than4 times bu up to 5

times of annual average income with

additional interest of 0.50% by Hub I/C and

0.25% by RH

11. score :

If the borrower secure 50 marks and above the loan is to sanctioned by the regional

head/ hub in- charge within their delegated powers

Deviation permissile under the delegation of regional head :

a) if the score is between 45-49 marks loan can be allowed with additional

interest of 0.50% by retial HUB and 0.25% by Regional head.

b) If the score is between 40-44% marks, loan can be allowed with

additional interest of 1% by HUB and .50% by RH.

12. repayment period :-

Maximum 20 years in cash of purchase /construction of house/flat/ apartment (inclusive of

moratorium period)

13. security

Equitable mortgage of property to be purchased out of loan

14. processing charge :

Loan up to Rs. 2 lacs :- .50% (exluding service tax) of sanctioned loan amount

Loan above Rs. 2 lacs:- 1% (exluding service tax) of sanctioned loan amount

Reduction in processing charges up to .50% can be considered by loan sanctioning authority

15. prepayment charges:-

2%(excluding service tax) of prepaid amount. However prepayment up to 6 installments (at

the time of closure of account) will not attract foreclosure charges and if the account is marked

for rickovery due to any orregulatery and as result of it the account is prematurely closed no

prememt charges be levied

16. Insurance :-

The property should be fully insured against all possible hazards during the currency of the

loan in favour of the joint name of the borrower and the bank.however the cost of insurance

will be borne by the borrower and will be recoverd in addition to the EMI. The insurance be

got done for construction value. Value of land be reduced from the value of property.

17. recovery/ default convenants:-

A charge of Rs. 250 (excluding service tax) willbe levied in case of dishonour of the cheque

for the first time and rs. 350.(excluding service tax) for the subsequent dishonour. The interest

on defaulted amount will be charged @ 14% p.a. for the period of default. After default of

three consecutive installment necessary recovert action will be initiated by bank.

Feed back of bank:-

During the training period , I collected the information about the

bank that how many customer are satisfied with service of retail advances of bank but In

my observation, most of customer of the bank are satisfied with the immediately service

of the bank. Rate of interest of loan of bank of Rajasthan is high to compare the other

private bank. Behavior of the employee and service of bank is very better to compare the

other bank.Customer satisfaction level is high.

Now, bank is providing rate of interest on term deposit is 10.85% and for senior citizen

11.10%.