Loan Against Securities - Citicorp Finance India Ltd...Version: CFIL AAFA/ December/ 2017 CITICORP FINANCE INDIA LIMITED (CFIL) LOAN DOCUMENTATION Loan Against Securities LIST OF CONTENTS

Version: CFIL AAFA/ December/ 2017

CITICORP FINANCE INDIA LIMITED (CFIL) LOAN DOCUMENTATION

Loan Against Securities

LIST OF CONTENTS

1. Guide for easy completion of the application form and legal documents.

2. Non-Individual Account Application Form

3. Banker’s Signature Verification (2 copies)

4. Schedule of Charges

5. Customer Declaration cum acknowledgement

6. Agreement-cum-pledge-cum-guarantee (Attached Separately)

7. Letter of Continuity & Promissory Note (Attached Separately)


1. GUIDE FOR EASY COMPLETION OF THE APPLICATION FORM AND LEGAL DOCUMENTS

For your information the term “Borrower” is used for the first named Borrower of the Loan. The term “Co-applicant” is used for the other joint borrowers and word the “Borrowers” is used for all of them. The term “Guarantor” is used for any third party whose securities are being pledged. The term “Company” means Citicorp Finance India Limited. The word “Loan Facility” means the Loan Facility agreed to be provided by the Company and the “Loan or “Equity Loan” means the amount outstanding of the facility disbursed as reduced by repayment and prepayment.

Please provide self-attested copies of the KYC documents along with the application form as address and identity proofs as requested in application form along with a recent passport size photographs wherever applicable :

PAN card is mandatory for all borrowers, co-applicants and guarantors AADHAAR Card is mandatory for all borrowers(all signatories in case of entity) / Co-applicants

Some of the forms and documents require the signatures of the Borrower and Co-applicant(s) only, while others require signatures of Guarantor(s) as well. To help you identify the signature requirements at different places, please look for the following symbols: Symbol Signature Requirement Symbol Signature Requirements Borrower and Guarantor(s) Co-applicant(s) Signature Signature Documents to be completed 1. Non-Individual Account Application Form: Please fill in all the sections. If any section is not applicable, please

cross out & mark N.A. 2. Banker’s Verification of signatures: Please request your bank to complete the information in the format provided. 3. Service Charges Declaration: This needs to be signed by the Borrower and co-applicant(s). 4. Customer Declaration Cum Acknowledgement: This needs to be signed by the Borrower and co-applicant(s). 5. Agreement-cum-Pledge-cum Guarantee: This needs to be signed by the Borrower, co-applicant(s) and

Guarantor(s) (if any) on each page. 6. Letter of Continuity and Promissory Note: These need to be signed by the Borrower and Co-applicant(s) only.

There should be no alterations or cancellations on these documents.

REQ

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AS NOTIFIED BY CFIL Please ensure that the pledged shares : - are held in the name of the Borrower(s) and Guarantor(s) only. - are not from promoter’s/director’s quota. - are in marketable lots.

- are fully paid up.

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2. Application Form Borrower Information



Co-Borrower Information



Guarantor Information (1)



Guarantor Information (2)



Loan Facility

I/We would like to have a Loan Facility of maximum of Rs.___________ (in Figures)

Limit Request

Rupees ___________________________________________ (in Words)

I/We request you to kindly grant me/us a Loan Facility against the pledge of financial securities like Shares/Units/ Bonds etc.

I/We require the funds for the following purpose: Loan Request Letter

Personal Use /Education Use Purchase of Property Investments

Duration of the Loan Facility ______________________ (months)

Repayment Through: Cash Flows Sale Assets Other Investments Maturing

1. I/We have read and understood the Loan Facility terms and conditions. I/We accept and agree to be bound by

the said terms and conditions including those excluding / limiting liability of the Company. 2. I/We confirm that I am/we are Resident Indians. 3. I/We confirm that the funds will be used for the stated purposes only and will not be used for speculative

and/or anti-social purposes. 4. I/We hereby confirm my/our awareness that advance/loan made/to be made to me/us against the pledge of

Units of Mutual Fund is not permitted to be used for the purpose of subscribing to or boosting up the sales of any mutual fund or for the purchase of shares/debentures/bonds in either primary or secondary market.

5. I/We hereby accordingly agree and undertake not to utilize the to the amount of the Loan Facility granted to me/us by the Company against the pledge of my/our/guarantor’s securities, for the aforesaid purpose.

6. I/We confirm that we are not Directors/Promoters of the companies whose share are pledged. 7. I/We confirm that the instruments to be pledged are held by us in our/guarantor(s) name(s) and not in

our/their capacity as a trustee or a guardian of another person. 8. I/We confirm to pay any commission/interest charges, as and when due, for using the Loan Facility. 9. I/We understand that the sanction of the Loan Facility is at the sole discretion of the Company and I/We will

execute necessary security documentation as per Company’s requirements and to its satisfaction. 10. I/We understand that the Company has the right to recall the Loan Facility if it is not used for the stated

purposes, and/or for speculative and/or anti social purposes. Agreement 11. I/We understand that the Company reserves the absolute right to accept or reject the Loan Facility application

in its sole discretion.. If my/our application is rejected, I/We reserve no right to object If my/our application is rejected. I/we undertake that it will be my/our responsibility to collect back the pledged securities.

12. I/We agree that this information shall remain the property of the Company, whether or not my/our application is finally accepted by the Company.

13. In case of any change in the declared purpose of the use of funds under this Facility, I/We undertake to send prior intimation to the Company.

14. I/We undertake that I/We have submitted at my/our risk this application form and the related security documentation alongwith the original scrips representing the pledged securities to your authorised Custodians/Depository Participant, I/We declare that I/We have not paid any commission/fees to any person for the information given except reimbursement towards stamp and documentation charges.

15. I/We confirm that all the applicants (including co-applicants) are major. 16. I/We agree to pay out of pocket expenses, annually (non- refundable), as specified by the Company, from

time to time. 17. I/We solemnly affirm that the information furnished above is in all respects true, accurate and complete.

Name ____________________________________ Signature B

Name ____________________________________ Signature B

Name ____________________________________ Signature B

(Please ensure that all the applicants have signed

above) Date:


3a. Banker’s Signature Verification

(for Borrower) Dated: To, The Manager, ________________________ ________________________ ________________________

Re: VERIFICATION OF SIGNATURES

Dear Sir / Madam, We hereby request you to kindly verify the signature(s) of your following person/s whose name(s) and address(es) is/are given below. Please verify the signature and other details of the Signature(s) only if he has/they have maintained the amount with you for more than one year and if their operations with you have been satisfactory and endorse your verification hereinbelow.

Name & Address of Account holder(s) Account No. with your Bank Account holder’s Signature(s)

1. ________________________

________________________

_________________________ ________________________

________________________

________________________

2. ________________________

________________________

_________________________ ________________________

_________________________ _________________________

3. ________________________

________________________

_________________________ ________________________

_________________________ ________________________

4. ________________________

________________________

_________________________ ________________________

_________________________ ________________________

We solicit your kind co-operation in this regard. VERIFICATION Sincerely yours, _____________________ (Bank’s Seal & Signature)

Date: Branch Manager


3b. Banker’s Signature Verification

(for Guarantor)

Dated: To, The Manager, ________________________ ________________________ ________________________

Re: VERIFICATION OF SIGNATURES

Dear Sir / Madam, We hereby request you to kindly verify the signature(s) of your following person/s whose name(s) and address(es) is/are given below. Please verify the signature and other details of the Signature(s) only if he has/they have maintained the amount with you for more than one year and if their operations with you have been satisfactory and endorse your verification hereinbelow.

Name & Address of Account holder(s) Account No. with your Bank Account holder’s Signature(s)

1. ________________________

________________________

_________________________ ________________________

________________________

________________________

2. ________________________

________________________

_________________________ ________________________

_________________________ _________________________

3. ________________________

________________________

_________________________ ________________________

_________________________ ________________________

4. ________________________

________________________

_________________________ ________________________

_________________________ ________________________

We solicit your kind co-operation in this regard. VERIFICATION Sincerely yours, _____________________ (Bank’s Seal & Signature)

Date: Branch Manager


Schedule Of Charges

Type Charges

Annual Service Charges (% of Sanction Amount) ____%

Enhancement Charges (% of Enhanced Amount)^ ____%

Additional interest payable by way of late payment of interest* 3% p.a.

Cheque/DD Dishonor Rs 200/- per dishonor

Cheque/DD Pickup Rs 200/- per visit

Prepayment (if any) Nil on the principal outstanding

Any other charges incurred for recovery (if any) At actuals

Stamp duty At actuals

Processing fee Maximum 1% of the loan amount

Scrip withdrawal charges# Up to 2 scrips –Rs.100 per scrip¸ For 3 or more scrips‐Rs.250 flat

^ For enhancements, the charge will be % of the enhanced amount from the date of enhancement to the date of expiry of the line, on a pro rate basis. *Additional interest is levied on the entire amount outstanding in the account for the actual number of days delayed beyond the due date of repayment. #Scrip refers to any single ISIN (for equity shares) or scheme of Mutual fund. The count is for the number of scrips in a single instruction.

The above mentioned charges (annual service charges, additional interest due to late payment, enhancement charges, withdrawal charges etc.) may be varied by the Company from time to time at its sole discretion by providing prior notice of 30 days. I/We agree and accept to be bound by such changes.

The Company reserves the right to add, change the above list at its sole discretion

“I / We hereby declare and confirm my/our awareness of the stamp duty applicable on the various agreements/documents, in relation to the Loan Facility, executed or to be executed by the Borrower(s) and the Borrower(s) undertakes, forthwith on demand by the Company to pay/reimburse to the Company all stamp duty paid/payable on all such agreements/documents.

B

B

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5. Customer Declaration Cum Acknowledgment

I / We have carefully read, understood/was explained in English / the vernacular Language known to me, the contents and the terms and conditions of the Loan Application as well as the terms and conditions of the Loan Agreement (‘Agreement’) Proposed to be executed bearing the same reference number as the Application. I / We understand the fact that the sanction of the Loan amount is at the sole discretion of Citicorp Finance (India) Limited (“CFIL”) which reserves its right to reject the Loan Application and consequent disbursement of the Loan Amount. I / We shall be bound by the terms and conditions of the Agreement. I / We certify that I am / we are a Citizen of India. I / We certify that neither I / We have been declared Insolvent nor has any insolvency/bankruptcy proceedings have been initiated against me / us. I / We certify that the information furnished by me / us in this Application is true and correct. I /We hereby certify that CFIL may verify or check any of the information given herein. I / We understand that CFIL will not be subject to any obligations of confidentiality regarding information submitted by me herein except agreed by CFIL entity having direct customer relationship or as otherwise specifically agreed upon or required by law. I / We agree and accept that CFIL may share the information with its Parent/Group Company(s) and/or with its subsidiaries/affiliates/assignees. I / We confirm to furnish deed of guarantee, if required, promissory note or any other documents as and when required by CFIL. I / We certify that CFIL may by itself or through authorized persons, Lawyers, Agencies, Bureau, etc., verify any information given, check credit reference, employment details and obtain credit reports to determine my credit worthiness in connection with this application and/or in case CFIL is required to conduct additional/further checks in order to assess my eligibility for further Loans in the future in line with business policy of CFIL. By submitting Aadhaar number to Citi, I/We hereby authorize Citi to collect, store, use, authenticate my/our Aadhaar number and demographic details (Information) against UIDAI database by itself or via Experian Services India Pvt Ltd, an Authentication User Agency duly licensed by UIDAI before updating my loan account and also share Information with its various departments, affiliates and service providers for any account to which I/We are Borrower, Co-Borrower and signatory(ies) for availing loan against securities or any other products and services currently or may do so in future. CFIL will use the Aadhaar number to offer transaction services to me/us, as may be applicable. CFIL may use my/our demographic and biometric/OTP (One Time Password) (or any similar authentication mechanism) information for the purpose of Aadhaar based authentication/ e-KYC purpose of Aadhaar based authentication/ e-KYC “I / We understand that CFIL may disclose my/our name all/any information, documents relating to me including agreement entered into, for the purpose of protection of interests of CFIL in the event of default/breach by me under the agreement to all affiliates of CFIL, Credit rating agencies, bureau, banks, financial Institutions, Non‐Banking Financial Institutions, or any governmental or regulatory authorities/bodies/departments. I /We further confirm receipt of acknowledgement issued by CFIL in respect of my Loan Application, which also contains the various channels through which customer queries/grievances may be communicated to CFIL “in the event of any disputes/differences arising out of the present Loan Application, the same shall be finally resolved by an Arbitration Tribunal comprising of Sole Arbitrator to be appointed by CFIL, to be held at _________” in accordance with the provisions of the Arbitration and Conciliation Act, 1996 including any amendments thereof”. I understand that the Term Loan limit will be available as per the value of approved securities pledged in favour of CFIL, subject to the margin specified in sanction letter. The margin amount, the list of approved securities and the valuation of the securities may change from time to time as per CFIL’s internal policies and communicated to me accordingly. The margin required and maximum term loan amount is also subject to the Reserve Bank of India’s rules / regulations in force from time to time.

Place: ___________________Date:____________________ Time:_______________ ____________________________________ Borrower’s signature/ Thumb Impression And seal (if applicable)


Interest policy as followed by CFIL: Risk gradation is determined based on risk associated with type of loan, value of security or collateral available, tenor of the loan and quantum of loan. In addition, there is a periodic benchmarking exercise of the interest rates and product features with the competition offerings. Refer to the pricing grid below.

Product Prevailing Min Effective Rate* Prevailing Max Effective Rate*

Loan against Shares/Mutual Funds/Bonds/any other acceptable collateral

9.75% 11%

*The above are prevailing interest rates charged by CFIL and are subject to revision from to time as decided by the management. For latest rates and charges, kindly contact your nearest branch office. The annualized rate of interest mentioned above is charged on principal outstanding amount over the tenor of the loan. Interest rates charged by the Company incorporate risk premium as considered reasonable and justified having regard to the internal rating of the borrowers, the value of the securities, together with other factors including borrower’s income, loan size, previous credit history, Bureau information, etc.

Place: ___________________Date:____________________ Time:_______________ ____________________________________ Borrower’s signature/ Thumb Impression And Seal (if applicable)

Acknowledgment of Receipt of Loan Application Form No We acknowledge the receipt of your proposal, which shall be processed on a best effort basis within 15 days from the date of receipt of all necessary documents. This is only an acknowledgement for the receipt of the account opening form and other supporting documents and should not be construed as an acceptance of documents and approval of the loan facility. The acceptance of this application is subject to the internal rules and regulations of Citicorp Finance India Limited (CFIL) and other applicable regulations from time to time. . Place: ___________________Date:____________________ Time: _______________ For Citicorp Finance India Limited (CFIL): Name: __________________________ Stamp / Signature ____________________________

Should you wish to provide us any feedback or share any grievance related to our service, please write in to us at the following email address:

[email protected]

mailto:[email protected]