Retail Banking (Asset Products)-Questions & Answers 1. UCO Doctor Loan Scheme (Revised)(Circular No CHO/ABRD/12/2012-13 dt 21.06.2012) 1. What credit facilities are provided under the UCO Doctor scheme? A: Both term loan & Cash credit. 2. What should be the minimum DSCR for term loan under the UCO Doctor scheme? A: 1.50 3. What is the maximum term loan in rural/semi-urban areas under the UCO Doctor scheme? A: Rs 50lac 4. What is the maximum term loan in Urban/Metro areas under the UCO Doctor Scheme? A: Rs300lac 5. What is the maximum cash credit limit that can be sanctioned under UCO Doctor Scheme? A: a) Maximum 10% of the loan amount upto Rs100lac b) Maximum 5% of the loan amount above Rs100lac 6. What amount of collateral security is to be taken for loans & advances upto Rs100lac under the UCO Doctor Scheme? A: No collateral security and third party guarantee. To be compulsorily covered under CGSMSE. 7. What is the margin to be contributed by the borrower in case of UCO Doctor scheme? A:i) Term loan: Loans up to Rs10lac: 15%, Others: 20% of the cost of the project/equipment. ii) Working capital: 10% 8. What is the term loan repayment period under UCO Doctor Scheme? A: 60 months (including moratorium of 6 months). The loan shall be repayable in EMIs commencing after one month of completion of the project or moratorium of 6 months, whichever is earlier. Interest to be serviced as and when applied (including moratorium period). Repayment period may be extended to 84 months by ZLCAC, where the project cash flow justifies the same. 9. Whether the repayment period may be extended from 60 months under UCO Doctor Scheme? A: Repayment period may be extended to 84 months by ZLCAC, where the project cash flow justifies the same. 10. What is the processing charges under UCO Doctor Scheme? A: 1% plus applicable service tax and education cess (minimum Rs1000/-) 2. UCO Two-Wheeler Loan Scheme 11. What is the maximum amount of loan under UCO Two-wheeler scheme? A: Rs0.60lac or 90% of the cost of the new two-wheeler of well known brand, whichever is less. Zonal Manager may authorize sanction up to Rs1lac for purchase of feature-rich two-wheeler in deserving cases. 12. What is the minimum margin to be contributed by the borrower in case of loan under UCO Twowheeler scheme? A: 10% of the total cost on road. 13. What is the income criterion for salaried person for availing loan under UCO Two-wheeler scheme? A: Minimum gross salary of Rs8000/- per month. 1
14. What is the income criterion for non-salaried person for availing loan under UCO Twowheeler scheme? A: i) Minimum income of Rs1lac p.a. as per Income tax return /Assessment order in the preceding Year. Or, ii) Minimum income of Rs1.5lac p.a. for purchase of feature rich vehicles. 15. What is the repayment period in case of loan under UCO Two-wheeler scheme? A: Maximum 48 EMIs commencing from one month after disbursement. 16. What is the processing charge for loan under UCO Two-wheeler scheme? A: 1%, minimum Rs500/- 17. What is the rate of interest for loan under UCO Two-wheeler scheme? A: 12.25% p.a. (fixed) 18. Whether there is concession in rate of interest for loan under UCO Two-wheeler scheme? A: i) 1% if loan account is backed by full liquid collateral. ii) 0.50% if loan account is backed by 50% liquid collateral. 19. What is the guarantee requirement in case of loan under UCO Two-wheeler scheme? A: For salaried person, compulsory guarantee: Personal guarantee of spouse or nominee of PF/Gratuity of the borrower. For non-salaried person, compulsory guarantee: Personal guarantee of the spouse of the married borrower or, Personal guarantee of the mother/surviving parent in case of unmarried borrower, or where spouse guarantee is not available for obvious reasons. For non-salaried person, additional guarantee: By one more guarantor having income equal to that of the borrower or having means at least equal to the loan amount. 20. What is the age criterion for loan under UCO Two-wheeler scheme? A: For salaried borrower: 21 to 55 years. For non-salaried borrower: 21 to 60 years. 3. UCO Education Loan Scheme 21. What is the maximum quantum of finance under UCO Education Loan Scheme? A:a) Rs10lac for studies in India b) Rs20lac for studies abroad. 22. What is the margin to be brought under UCO Education Loan Scheme? A: a) Upto Rs4lac-No margin. b) Above Rs4lac Studies in India-5%, Studies abroad-15% (scholarship to be included in margin, Margin to be brought in year to year basis at the time of disbursement.) 23. What is the age limit for students for availing UCO Education Loan? a) No minimum age criteria. Names shall be jointly in the name of parents and the student and the student shall ratify the borrowing on attaining the age of 18 years by acknowledging the debt b) For vocational training course, job oriented diploma course and graduation course - Maximum 25 years. c) For post graduation diploma courses for general candidates - Maximum 30 years d) For graduation and post graduation for general candidates - Maximum 28 years & 30 years respectively. e) For graduation/diploma and post graduation for SC/ST candidates-maximum 30 and 33 years respectively. 2
24. What is the security stipulation in regard to education loan upto Rs4lac? A: No security. 25. What is the security stipulation in regard to education loan above Rs4lac upto Rs7.5lac? A: a) Co-obligation of parents b) Third party guarantee (The Bank may waive 3 rd party guarantee if satisfied with net worth of the parent.) 26. What is the security stipulation in regard to education loan above Rs7.5lac? A: a) Co-obligation of parents b) tangible collateral security equal to full value of the loan. 27. What is the parent s /family income stipulation in case of UCO Education loan? A: No ceiling. 28. What is the repayment holiday or moratorium in case of UCO Education loan? A: Course period + 1 year or 6 months after getting job, whichever is earlier. (During this period, interest is to be debited on simple rate basis) 29. What is the repayment period in case of UCO Education loan? A: a) Loans upto Rs.7.50 lacs - Upto 10 years. b) Loans above Rs.7.50 lacs - Upto 15 year. c) If the student is not able to complete the course within the schedule time, extension of time for completion of course may be permitted for a maximum period of 2 years. 30. What is the processing charge under UCO Education loan? A: Nil. 4. UCO Car Loan Scheme 31. Who is the target group for UCO Car Scheme? A: a) Permanent employees (salaried group) with minimum 2 years completed service and 5 years remaining service. b) Established professionals & Businessmen. 32. What is the income criterion for availing loan under UCO Car Scheme? A: For salaried person: Minimum take home pay Rs10, 000/- per month plus the amount of EMI for the proposed loan. For Non-salaried person: Minimum income of Rs2.40lac as per ITR/Assessment as per ITR during preceding year. Minimum average income for 3 preceding years should be Rs1.50lac. 33. Whether income of spouse/children can be clubbed with the income of the applicant-borrower to enhance the eligible loan amount? A: Yes, income of spouse/children can be clubbed with the income of the applicant-borrower to enhance the eligible loan amount on their agreeing to stand as guarantor/co-obligant. 34. What is the margin amount requirement for purchase of new and old car under UCO Car Scheme? A: a) Minimum 15% for new vehicle. b) Minimum 30% for second hand vehicle. (If age of the car is upto 4 years) c) Minimum 40% for second hand vehicle. (If age of the car is more than 4 years and upto 5 years) 35. What is the maximum amount of loan for purchasing new vehicle under UCO Car Scheme? A: Maximum Rs15lac or 85% of the cost of the vehicle whichever is less. Zonal Manager is the competent authority to sanction upto Rs25lac. 36. What is the maximum amount of loan for purchasing 2 nd hand vehicle is more than 4 years and upto 5 years) A: Maximum Rs3.50lac or 70% (upto 4 years old)/ 60% (age is more than 4 years and upto 5 years) of the cost of vehicle whichever is less. 37. How loan under UCO Car Scheme is covered by personal guarantee? A: a) Personal guarantee of spouse/nominee of PF, Gratuity of the borrower is compulsory in case of Salaried class. b) Personal guarantee of spouse of borrower is compulsory in case of non-salaried borrower. 3
38. What is the repayment period in case of finance of new car under UCO Car Scheme? A: Maximum 84 equated monthly instalments, one month after disbursement. 39. What is the repayment period in case of finance of 2 nd hand vehicle under UCO Car Scheme? A: To be repaid within the residual life subject to a maximum of 36 months. 40. What is the processing charge for availing loan under UCO Car Scheme? A: 1% of the loan amount subject to a ceiling of Rs1500/-only. 41. What is the lending power of Scale-I, II & III Officers for financing under UCO Car Scheme? A: Scale-I: Rs2lac, Scale-II: Rs4lac, Scale-III: Rs7.5lac. 5. UCO Cash Loan Scheme 42. Who are the target groups under UCO Cash Loan Scheme? A: Confirmed employees of i) Govt. /Semi Govt. departments ii) Reputed Public/private Ltd Companies, iii) Colleges/Universities iv) Public sector Undertakings, v) Other recognized institutions. 43. What is the minimum length of service criterion of an employee for availing loan under UCO Cash Loan Scheme? A: A permanent employee who has completed minimum 3 years of service in the institutions as mentioned above. 44. What is the income criterion for availing loan under UCO Cash Scheme? A: Net take home pay should be more than 40% of gross salary after deduction of PF, IT and other statutory deductions including proposed EMI. Other incomes like rent, dividend, interest etc may be taken into account for reckoning the eligible quantum of loan subject to production of documentary evidence like IT returns etc. 45. What is the quantum of loan under UCO Cash Scheme? A: 90% of the proposed expenditure subject to a maximum of Rs2lac. 46. How loan under UCO Cash Scheme is covered by personal guarantee? A: a) Personal guarantee of spouse/nominee of PF, Gratuity of the borrower is compulsory. b) One additional personal guarantee of a person having income equal to that of the borrower. The guarantee as mentioned in (b) may be waived if 40% of the loan amount is covered by liquid collateral security. 47. What is the repayment period in case of finance under UCO Cash Scheme? A: For men- 48 EMIs, For Women- 60 EMIs subject to remaining period of service (Entire loan to be repaid before one year of retirement) 48. What is the processing charge for availing loan under UCO Cash Scheme? A: 1% of the loan amount subject to a ceiling of Rs750/-only. 49. What is the lending power of Scale-I, II & III Officers for financing under UCO Cash Scheme? A: Scale-I: Rs1lac, Scale-II: Rs1lac, Scale-III: Rs1lac. & Scale-IV: Rs2lac. 50. How repayment is ensured in UCO Cash loan which is a kind of unsecured loan? A: i) Employer s undertaking to be obtained for deducting monthly installment from monthly salary of the employee and remitting it direct to bank and that in case of default or discontinuance of service, the loan installments will be recovered from terminal benefits. ii) Irrevocable letter of authority to be obtained from borrower to deduct monthly installments from the salary and from terminal benefits in case of death, retirement, termination and resignation. iii) The borrower s company/institution should have an account with us and salary of its employees should be disbursed through our bank s branches. In deserving cases, Branch Managers in Scale III & above in addition to ZM may relax this condition. In exceptional cases, ZMs may relax the above three conditions. 4
Note: It has been decided to merge two schemes (UCO Cash and UCO Narisakti) into a single scheme named UCO Cash. However, loans to women beneficiaries would continue to be eligible for 1% concession in rate of interest and also have repayment tenure of 60 months (against 48 months). (CHO/Retail Banking/13/2009-10 dt 22.08.2009) 6. UCO Pension Loan Scheme 51. Who are the target groups under UCO Pension Loan Scheme? A: Pensioners who receive pension through our branch only. War widows and Widows drawing family pension through our branch are also eligible provided there is another co-borrower of sufficient means. 52. What is the quantum of loan under UCO Pension Scheme? A: 10 times of monthly pension subject to a maximum of Rs1, 00,000/-. (Maximum Rs1, 50,000 where family pension is admissible) Subject to repayment capacity, the Zonal Head may permit deviation and allow enhancement up to 50% over and above the existing maximum limit i.e. Rs. 1.50 lacs for pensioners without provision for family pension and Rs.2.25 lacs for pensioners with provision for family pension. 53. How loan under UCO Pension Scheme is covered by personal guarantee? A: Personal guarantee of spouse eligible to receive family pension in the event of the death of the Pensioner. Where spouse is predeceased, guarantee of sons/daughters or a third party may be obtained. 54. What is the processing charge for availing loan under UCO Pension Scheme? A: Nil. 55. What is the repayment period in case of finance under UCO Pension Scheme? A: In 12 to 24 monthly installments after one month from disbursement. In genuine cases, repayment may be extended upto 36 months. Again, repayment should be so fixed that the loan is fully repaid before the pensioner reaches 70 years age. 56. What is the lending power of Scale-I, II & III Officers for financing under UCO Pension Scheme? A: Scale I-Rs1.50lac, Scale II-Rs1.50lac, Scale III-Rs1.50lac. 7. UCO Securities Loan Scheme 57. What are the eligible securities against which finance can be made under UCO Securities Scheme? A: NSC/KVP/Govt. securities, Relief Bonds, Life insurance policies, Bonds issued by IDBI, NHB, SIDBI, NABARD, UTI, GIC, EXIM Bank, DFHI. 58. Who are eligible to avail finance under UCO Securities Scheme? A: Any person holding financial securities in his/her name. Securities may be in the name of any one in case of joint borrowers. 59. What are the different types of credit facilities under UCO Securities Scheme? A: Cash Credit/Overdraft/Demand loan 60. What is the margin amount requirement under UCO Securities Scheme? A: Where remaining period of maturity is upto 12 months Margin 2% 12 months and upto 24 months Margin 3% 24 months and upto 36 months Margin 4% 36 months Margin 5% 61. What is the quantum of loan under UCO Securities Scheme? A: There is no minimum or maximum loan amount. Only discounted value of securities as per table will be financed. 5
62. What is the processing charge for availing loan under UCO Securities Scheme? A: Rs250/ per case. 63. What is the lending power of Scale-I, II & III Officers for financing under UCO Securities Scheme? A: Scale-I: Rs2lac, Scale-II: Rs5lac, Scale-III: Rs15lac. 64. What is the repayment period in case of finance under UCO Securities Scheme? A: Remaining period of maturity (Maximum 5 years) 8. UCO Swabhiman Scheme (Reverse Mortgage Loan Scheme for Senior Citizens) 65. Who are the target groups under UCO Swabhiman Scheme? A: Senior Citizens (Above 60 years of age). 66. What are the eligibility criteria for availing loan under UCO Swabhiman Scheme? A: a) Senior citizen should own a residential property with clear & marketable title. b) The residential property should be used as permanent primary residence by the proposed borrower. c) In case the property is a flat, then the age of the flat should not be more than 20 years. 67. What is the maximum amount of loan under UCO Swabhiman Scheme? A: Rs50lac. 68. What is the margin amount requirement under UCO Swabhiman Scheme? A: Minimum 40%. 69. What is the period of loan under UCO Swabhiman Scheme? A: Minimum: 5 years, Maximum: 15 years. 70. How the period of loan is linked with age of borrower under UCO Swabhiman Scheme? A: Age of borrower (in years) Tenure (in years) 60-65 15 66-70 10 71-75 10-5 Above 75 5 71. What is the processing charge for availing loan under UCO Swabhiman Scheme? A: 0.25% of loan amount. 72. What is the mode of payment/disbursement under UCO Swabhiman Scheme? A: The borrower will have three options on mode of payment/disbursement: a) Fixed EMI (Monthly or quarterly) over a period of maximum 180 months. b) Monthly installments with 5% increase year to year. c) Monthly installments with 5% increase year to year and an option to avail lump sum one time during the entire tenure. 73. What is the security in case of loan under UCO Swabhiman Scheme? A: EM of residential property. 74. What is relation between age of the applicant, value of residential property and the loan amount? Age of the applicant Loan Amount 60-65 Years 40% of assessed value of property 66-70 years 50% of assessed value of property 71-75 years 55% of assessed value of property Above 75 Years 60% of assessed value of property 6
9. UCO Mortgage Loan Scheme 75. Who are the target groups under UCO Mortgage Loan Scheme? A: a) Employees of Central & State governments, Schools, Colleges, Public Sector Undertakings, reputed corporate business enterprises. b) Professionals/businessmen who have regular source of income. 76. What is the maximum age limit of the borrower under UCO Mortgage Loan Scheme? A: 65 Years on the date of applying for the loan. 77. What is the minimum and maximum amount of loan under UCO Mortgage Loan Scheme? A: Minimum Amount: Rs2lac & Maximum Amount: Rs50lac. 78. What is the margin in case of UCO Mortgage Loan Scheme? A: 40% (60% of value of land is considered as loan amount). 79. What is the repayment period in case of term loan under UCO Mortgage Loan Scheme? A: Maximum 84 EMIs. 80. What is the income criterion in case of salaried person for availing loan under UCO Mortgage Loan Scheme? A: In case of salaried persons, the take home after all deductions including monthly installment of the proposed term loan should not be less than 40 percent of gross monthly income. 81. How old the property can be against which UCO Mortgage loan can be sanctioned? A: The property should not be more than 30 years old. 82. Whether UCO Mortgage loan can be availed against the property of a third party? A: Yes, but in that case, owner of the property should stand as a guarantor. 83. In case of loan against mortgage of commercial property, what precaution is to be taken? A: A tripartite agreement has to be entered into between the owner/mortgagor, tenant and the banker stipulating inter-alia that the rents and considerations which are being paid to the owner/ mortgagor shall be credited to the owner s/ mortgagor s loan account with the bank regularly till the loan account is fully adjusted. 84. What is the lending power of Scale-I, II & III Officers for financing under UCO Mortgage Loan Scheme? A: Scale-I: Rs5lac, Scale-II: Rs10lac, Scale-III; Rs20lac. 85. What is the processing charge for availing loan under UCO Mortgage Loan Scheme? A: 1% of loan amount sanctioned. 86. What is the pre-payment charge in case of loan under UCO Mortgage Loan Scheme? A: 1% of amount pre-paid. Note: The provision for allowing overdraft facility under UCO Mortgage scheme stands withdrawn with effect from 01.09.2009. (CHO/Retail Banking/13/2009-10 dt 22.08.2009) 7
10. UCO Trader Loan Scheme Q 87: Whether UCO Trader loan can be extended for export oriented trading? A: No. Q 88: What are other areas for which UCO Trader loan cannot be extended? A: The following are the other areas for which UCO Trader loan cannot be extended For speculative purpose For dealing in sensitive commodities as informed by RBI from time to time. For dealing in commodities the possession of which is prohibited by the land of law. Against bullion. To defaulters of our bank (excluding exempted categories) For providing fresh loans to clear NPA accounts in the Group/Associates. Q 89: What documents are to be taken to establish genuineness and legal status of the borrower? A: The following documents are to be taken as the case may be Trade License Certificate issued under Shop & Establishment Act Sales Tax Registration Certificate Drug License Certificate issued by Govt. body for retail trade such as ration and civil supplies. Q 90: Can UCO Trader loan be sanctioned against the primary security of book debts only? A: No, Again limit against book debt will not be more than 50% of the total assessed limit. Q 91: UCO Trader loan is to be covered by collateral security apart from primary security. What is the margin requirement in case of different types of collateral securities? A: i) 60% of market value of property will be considered i.e. margin is 40%. ii) 90% of FDR will be taken, so margin is 10% iii) 85% of SV of LIP/NSC/KVP will be taken, so margin is 15%. Q 92: What is the maximum amount of term loan that can be sanctioned under UCO Trader Scheme? What is the maximum repayment period? A: Rs25lac within maximum limit of Rs200lac. Maximum repayment period is 60 EMIs. Q 93: Is there any provision for adhoc increase in CC limit under UCO Trader Scheme? A: Yes, Adhoc facilities can be sanctioned upto 20% of the regular sanctioned limit by the branch heads in Scale IV and above subject to fulfillment of the following conditions: Total of regular and adhoc fund based limits would not exceed Rs200lac. Satisfactory conduct of the account for a minimum period of 2 years. Adhoc limit is valid for maximum 3 months or till regular enhancement is made whichever is earlier. Q 94: Whether issuance of Foreign LC is permitted under UCO Trader Scheme? A: Yes, but with the permission of the Zonal Manager in genuine cases and with usance as applicable to Inland LC. Q 95: Under what conditions Inland LC is issued under UCO Trader Scheme? A: Inland LC is issued under UCO Trader Scheme fulfilling the following conditions: Issued for procurement of goods traded. Issued as Sight-DP or DA with usance period not exceeding 90 days. Zonal Manager may relax the usance period up to 180 days. Q 96: Under what conditions Inland BG is issued under UCO Trader Scheme? A: Inland BG is issued under UCO Trader Scheme fulfilling the following conditions: 8
Issued for purposes connected with the trading activity of the borrower. Issued for a maximum period of 1 year including the claim period. Q 97: Is there any concept of command area in case of entertaining proposals under UCO Trader Scheme? A: Yes, there is concept of command area in case of entertaining proposals under UCO Trader Scheme which is furnished below: In case of small, medium & large branches, one of the contact points with the borrower i.e., factory, business premises or residence should be within 20 kms radius from the branch and all such contact points and collateral security should be within the City/Town/Panchayat Samity limits. In case of Very large & Exceptionally large branches, command area would be the city limit within which factory/ business premises/ residence should be located. However, they may accept collateral security anywhere in India. In above cases, exceptions may be permitted by ZM/GM(Retail) provided both residence and place of business fall within their respective area of jurisdiction HO controlled/permitted accounts are exempted from these provisions. Q 98: In case of allowing non-fund based facilities like Inland LC & BG, what is the common condition that must be fulfilled? A: Such non-fund based limits together should not exceed 50% of the total fund based limits sanctioned. Q 99: Under what circumstances, second valuation of property offered as collateral security is required to be done? A: The second valuation of property offered as collateral security is required to be done in the following cases by a second empanelled valuer: When valuation of the property exceeds Rs50lac. Even if the valuation of the property is value Rs50lac but the sanctioning authority is not satisfied with the first valuation. Q 100: For which amount of fund based limit of UCO Trader proposal, taking of audited financial statements are mandatory? A: For proposals from & above Rs50.00lac. Q 101: Up to which amount of fund based limit of UCO Trader proposal, limit can be assessed on the basis of self declaration about sales by the borrower? A: Up to Rs20lac if sales tax/vat/ Service tax returns etc are not available. Q 102: In case of UCO Trader loan, which kinds of security are not recognized as Collateral security? A: Agricultural land and Shares. Q 103: What documents are taken into consideration for assessing sales for fixing fund based limits above Rs20lac but below Rs50lac under UCO Trader Scheme? A: Where Sales tax is leviable, Sales tax/ VAT/Service tax returns/assessment order. Where such papers are not available, audited financial statements. Q 104: In case of UCO Trader loan, collateral security is required for fund based limit only, but not for non fund based limits. If a proposal from a single borrower is sanctioned with both fund and non-fund based facilities, what amount of limit will be mentioned in the security document like hypothecation agreement, confirming letter and Recital for equitable mortgage? A: Aggregate amount of fund based and non-fund based limits. Q 105: Is internal credit rating mandatory for UCO Trader loan? 9
A: For FB & NFB limit above Rs25lac, credit rating will be done for ascertaining the quality of asset but will not be used for determining rate of interest. Q 106: To what extent stocks hypothecated under UCO Trader are to be insured? A: Up to the maximum value of stocks maintained. Q 107: When non-fund based facilities like LC, BG are sanctioned under UCO Trader, hypothecation charge is extended over current assets for non-fund based facilities. Which document is taken for this purpose? A: A-9D. Q 108: Whether raising of Credit reports for borrowers/guarantors is necessary in case of UCO Trader loan? A: No, but statements of means are to be taken to be signed by the borrowers/guarantors and must be verified by the Advance-In charge or Branch Manager and the following noting should be made The correctness of the facts contained in the statement has been verified by the undersigned to the extent possible from the documents/papers furnished by the borrowers/guarantors and also by making enquiry from the market. Name of the official: Signature: Q 109: Whether second physical inspection of the property offered as collateral security is mandatory to be carried out before disbursal of the loan? A: Yes. PDIR (Pre-disbursal Inspection Report) is to be raised by an official other than the Official who raised PSVR-4 (Pre-sanction Inspection Report) before disbursal of the loan. Q 110: What documents are to be executed if Cash credit & Term loan are sanctioned under UCO Trader? A: The following documents are to be executed with the adequate stamp as per state-wise requirement. A-1/A-2 Demand promissory note A-47 Letter of waivement (No stamp) A-3 Letter of continuity A-109 Term loan agreement A-9 Hypothecation agreement against Stock of goods A-9B -- Hypothecation agreement against Book debts A 9A Hypothecation of fixed assets. Q 111: What documents are to be executed if LC, BG are sanctioned under UCO Trader? A: The following documents are to be executed with the adequate stamp as per state-wise requirement. A-88B for BG & FR-2 for LC, A-9D for both. Q 112: What is the frequency of Stock inspection in case of UCO Trader loan? A: Quarterly. Q 113: If FD, RD, NSC/KVP, Life Insurance Policy are taken as Collateral securities against UCO Trader loan, what documents are to be executed? A: The following documents are to be executed with the adequate stamp as per state-wise requirement. For FD A-38(R), For RD D-48 Not to be stamped. For NSC-KVP- A-4, For LIP- A-58 Q 114: Up to what amount of loan of UCO Trader is classified as Priority sector? A: Rs20lac. 10
Q 115: What are the norms for two ratios that must be observed while financing UCO Trader proposal of Rs50.00lac & above? A: Current ratio: 1:1, Benchmark minimum: 0.8:1 TOL/TNW: 6:1, Benchmark Maximum: 8:1 Q 116: What is the risk weight under Basel-II for UCO Trader loan outstanding? A: 75% as UCO Trader loans will come under Regulatory Retail. Q 117: What conditions are required to be satisfied by an existing enterprise to avail UCO Trader loan? A: Existing enterprises are required to be engaged in business for at least two years and are earning profit during the last two years. Q 118: What is the minimum and maximum fund based limit under UCO Trader? A: Minimum: Rs1lac, Maximum: Rs200lac. 12.UCO Home Loan Scheme 124. In case of UCO Home loan for purchase of old house/flat, how old the house/flat can be? A: Not more than 30 years old and free from tenancy. 125. Whether UCO Home loan is given for purchase of land? A: 50% of cost of land can be financed subject to ceiling of 30% of project cost. 126. UCO Home loan is given for extension/repair/renovation of existing house/flat. How old the house/flat can be? A: Not more than 50 years old. 127. What are the age criteria of applicants for availing UCO Home loan? A: Minimum 21 years of age and maximum 65 years of age inclusive of repayment period. 128. What is the loan entitlement in case of UCO Home loan? A: Lower of the following: i) 75% of project cost ii) The total deductions including the EMI of the proposed loan should not exceed 60% of the gross income in case gross monthly income upto Rs50, 000/-, 70% (subject to a minimum monthly take home pay of Rs20, 000/-) for GMI upto Rs1lac and 75% (subject to a minimum monthly take home pay of Rs30, 000/-)for GMI above Rs1lac. iii) 60 times of the Net Monthly Income of the borrower. 129. What is the maximum loan amount under UCO Home for construction/purchase in Metro/ Urban/ Semi-urban centers? A: Rs100lac. In select centres like Hyderabad, Chennai, Ahmedabad, Jaipur, Lucknow, Kolkata, Mumbai, Bangaluru, Delhi, Chandigarh, it is Rs200lac. 130. What is the maximum loan amount under UCO Home for construction/purchase in rural centers? A: Rs25lac 131. What is the maximum loan amount under UCO Home for extension/repair/renovation in Metro/ Urban/ Semi-urban centers? A: Rs25lac 132. What is the maximum loan amount under UCO Home for extension/repair/renovation in rural centers? A: Rs7.5lac 11
133. What is the margin in case of direct UCO Home loan, take over loan, for purchase of land, for furnishing? A: Margin is 25% of project cost for direct loans. Margin is nil for take over loans. Margin is 50% for purchase of land. Margin is 25% of the cost for furnishing. 134. When second loan under UCO Home can be sanctioned and for what purpose? A: No second loan within one year of sanction. Second loan can be for repair/renovation/extension of existing house. 135. What is the maximum repayment period and moratorium period under UCO Home loan? A: 25 Years, 18 months. 136. In case of loan is sanctioned to a senior citizen under UCO Home, the loan should be repaid before he attains the age of ----- years. A: 75 137. For salaried class, repayment should be completed before------ A: Retirement. 138. For others (Professionals/businessmen), repayment should be completed before------ A: 65 years of age. 139. What is the flexibility in repayment under UCO Home loan? A: In case of loan tenure is 15 years or more, EMI can be stepped up in every 5 years. During first 5 years, EMI will be 75% of notional EMI, next 5 years, EMI will be normal EMI. Thereafter, EMI will be reset depending on the remaining period of loan tenure. 140. Under what conditions, pre-payment charge can be levied under UCO Home loan? A: i) No pre-payment charge will be levied in case of floating rate of interest including takeover loans. ii) 2% of pre-payment amount under fixed rate of interest if pre-paid within 3 years of first disbursement. 141. What is the provision of penal interest under UCO Home loan? A: (a) For delay in payment of installment by one month or more, penal interest @ 2% p.a. on overdue amount for the period of delay. (b) If EMTD is not created within a maximum period of one month after final disbursement, bank is entitled to charge 2% penal interest for the period of delay. 142. What is the provision for personal guarantee in case of loan under UCO Home Loan Scheme? A: In cases where creation of charge is not possible, a tri-partite agreement between borrower, promoter (developer) and Bank shall be obtained. In cases where tri-partite agreement is not possible, third party guarantee is to be obtained. 143. In case of loan to a senior citizen under UCO Home Loan Scheme for securing shelter in old age homes, how the loan should be secured? A: The loan amount should be fully secured by way of term deposit which will be continuously renewed till liquidation of loan. 144. What are the delegated lending powers of Scale-I, II & III Officers under UCO Home loan Scheme? A: Rs5lac, Rs7.5lac & Rs15.00lac. 146. What is the permissible amount of loan for furnishing under UCO Home loan scheme? A: i) Maximum 75% of the cost of furnishing subject to a ceiling of 20% of the initial cost of acquisition of the property irrespective of the location of the property. The maximum amount is Rs5, 00,000/-. 12