THE UNION BANK OF INDIAThe dawn of twentieth century witnesses
the birth of a banking enterprise par excellenceUNION BANK OF
INDIA- that was flagged off by none other than the Father of the
Nation, Mahatma Gandhi. Since that the golden moment, Union Bank of
India has this far unflinchingly traveled the arduous road to
successful banking........ a journey that spans 88 years. We at
Union Bank of India, reiterate the objective of our inception to
the profound thoughts of the great Mahatma... "We should have the
ability to carry on a big bank, to manage efficiently million of
rupees in the course of our national activities. Though we have not
many banks among us, it does not follow that we are not capable of
efficiently managing million and million of rupees." Union Bank of
India is firmly committed to consolidating and maintaining its
identity as a leading, innovative commercial Bank, with a proactive
approach to the changing needs of the society. This has resulted in
a wide gamut of products and services, made available to its
valuable clientele in catering to the smallest of their needs.
Today, with its efficient, valueadded services, sustained growth,
consistent profitability and development of new technologies, Union
Bank has ensured complete customer delight, living up to its image
of, GOOD PEOPLE TO BANK WITH. Anticipative banking- the ability to
gauge the customer's needs well ahead of real-time - forms the
vital ingredient in value-based services to effectively reduce the
gap between expectations and deliverables. The key to the success
of any organisation lies with its people. No wonder, Union Bank's
unique family of about 26,000 qualified / skilled employees is and
ever will be dedicated and delighted to serve the discerning
customer with professionalism and wholeheartedness. Union Bank is a
Public Sector Unit with 55.43% Share Capital held by the Government
of India. The Bank came out with its Initial Public Offer (IPO) in
August 20, 2002 and Follow on Public Offer in February 2006.
Presently 44.57 % of Share Capital is presently held by
Institutions, Individuals and Others. Over the years, the Bank has
earned the reputation of being a techno-savvy and is a front runner
among public sector banks in modern-day banking trends. It is one
of the pioneer public sector banks, which launched Core Banking
Solution in 2002. Under this solution umbrella, All Branches of the
Bank have been 1135 networked ATMs, with online Telebanking
facility made available to all its Core Banking Customers -
individual as well as corporate. In addition to this, the versatile
Internet Banking provides extensive information pertaining to
accounts and facets of banking. Regular banking services apart, the
customer can also avail of a variety of other value-added services
like Cash Management Service, Insurance, Mutual Funds and
De-mat.
The Bank will ever strive in its endeavour to provide services
to its customer and enhance its businesses thereby fulfilling its
vision of becoming THE BANK OF FIRST CHOICE IN OUR CHOSEN AREA BY
BUILDING BENEFICIAL AND LASTING RELATIONSHIP WITH CUSTOMERS THROUGH
A PROCESS OF CONTINUOUS IMPROVEMENTTop of Form
/w EPDw ULLTE0N
Bottom of Form
CORPORATE MISSION
A logical extension of the Vision Statement is the Mission of
the Bank , which is to gain market recognition in the chosen areas.
To build a sizeable market share in each of the chosen areas of
business through effective strategies in terms of pricing, product
packaging and promoting the product in the market. To facilitate a
process of restructuring of branches to support a greater
efficiency in the retail banking field. To sustain the mission
objective through harnessing technology driven banking and delivery
channels. To promote confidence and commitment among the staff
members, to address the expectations of the customers efficiently
and handle technology banking with ease.
RETAIL LENDINGis the practice of loaning money to individuals
rather than institutions. Retail lending is done by banks, credit
unions, and savings and loan associations. These institutions make
loans for automobile purchases, home purchases, medical care, home
repair, vacations, and other consumer uses. Retail lending has
taken a prominent role in the lending activities of banks, as the
availability of credit and the number of products offered for
retail lending have grown. The amounts loaned through retail
lending are usually smaller than those loaned to businesses. Retail
lending may take the form of installment loans, which must be paid
off little by little over the course of years, or non-installment
loans, which are paid off in one lump sum.
The union bank retail lending zones are called as UNION LOAN
POINTS (ULPS), specialized in retail banking ,the main ULP of
Chandigarh is situated in sec 35. THE STATE BANK OF INDIA loan
points are named as RACPC(retail assest central processing centres
),THE ALLAHABAD BANK loan points are called as RETAIL BOTIQUE,etc
The banking sector has been divided into two main areas:
1) Non-priority sector
2) Priority sector
The priority sector comprises of the following segments: 1.
Agriculture 2. Small scale industries (including setting up of
industrial estates) 3. Small road and water transport operators
(owning upto 10 vehicles). 4. Small business (Original cost of
equipment used for business not to exceed Rs 20lakh) 5. Retail
trade (advances to private retail traders upto Rs.10lakh) 6.
Professional and self-employed persons (borrowing limit not
exceeding Rs.10 lakh of which not more than Rs.2lakh for working
capital; in the case of qualified medical practitioners setting up
practice in rural areas, the limits are Rs 15lakh and Rs 3lakh
respectively and purchase of one motor vehicle within these limits
can be included under priority sector) 7. State sponsored
organisations for Scheduled Castes/Scheduled Tribes 8. Education
(educational loans granted to individuals by banks) 9. Housing
[both direct and indirect loans upto Rs.5 lakhs (direct loans upto
Rs 10lakh in urban/ metropolitan areas), Loans upto Rs 1lakh and Rs
2lakh for repairing of houses in rural/ semiurban and urban areas
respectively]. 10. Consumption loans (under the consumption credit
scheme for weaker sections) 11. Micro-credit provided by banks
either directly or through any intermediaty; Loans to self help
groups(SHGs) / Non Governmental Organisations (NGOs) for onlending
to SHGs 12. Loans to the software industry (having credit limit not
exceeding Rs 1 crore from the banking system) 13. Loans to
specified industries in the food and agro-processing sector having
investment in plant and machinery up to Rs 5 crore. 14. Investment
by banks in venture capital (venture capital funds/ companies
registered with SEBI The retail lending is generally the lending
done to private individuals , as opposed to institutions.use tthe
loans under retail lending are also called
as unsecured loans, and the priority sector ones are called as
secured loan because the former are more prone to risk as lending
done to individuals the security availed in return at times may not
be appropriate or sufficen,whereas the latter rare more secure
because these loans are backed up by recievables. What are the
targets under priority sector lending ? Ans : The targets and
sub-targets set under priority sector lending for domestic and
foreign banks operating in India are furnished below : Domestic
banks (both public sector and private sector banks) Total Priority
Sector advances Total agricultural advances SSI advances Export
credit 40 percent of NBC Foreign banks operating in India
32 percent of NBC
18 percent of NBC
No target
No target Export credit does not form part of priority sector 10
percent of NBC
10 percent of NBC 12 percent of NBC
Advances to weaker sections
No target
The NON-PRIORITY sector comprises of retail loans, general
advances and corporate loans.
THE RETAIL LENDING COMPRISES of:
1) 2) 3) 4) 5) 6)
Housing loan called as UNION HOME Vehicle loan called as UNION
MILES Personal loans called as UNION COMFORT UNION SMILE UNION
MORTGAGE UNION TOP-UP SCHEME
7) UNION EDUCATION 8) UNION HEALTH 9) UNION CASH 10)UNION
REVERSE MORTGAGE 11)UNION RENT
MODEL CODE FAIR LENDING PRACTICES CODE (FLPC) The Fair Lending
Practice Code is as follows: 1. IMPORTANT DECLARATIONS: Our Bank
declares and undertakes To provide professional, efficient,
courteous, diligent and speedy services in the matter of retail
lending. Not to discriminate on the basis of religion, caste, sex,
descent or any of them. To be fair and honest in advertisement and
marketing of Loan Products. To provide customers with accurate and
timely disclosure of terms, costs, rights and liabilities as
regards loan transactions. If sought, to provide such assistance or
advise to customers in contacting loans. To attempt in good faith
to resolve any disputes or differences with customers by setting up
complaint redressal cells within the organisation. To comply with
all the regulatory requirements in good faith. To spread general
awareness about potential risks in contacting loans and encourage
customers to take independent financial advise and not act only on
representation from Bank. 2. FAIR PRACTICES: 2.1. PRODUCT
INFORMATION: A prospective customer would be given all the
necessary information adequately explaining the range of loan
products available with our Bank to suit his needs. On exercise of
choice, the customer would be given the relevant information about
the loan product of choice.
The Customer would be explained the processes involved till
sanction and disbursement of loan and would be notified of
timeframe within which all the processes will be completed
ordinarily at our Bank. The Customer would be informed of the names
and phone numbers of branches and the persons, whom he can contact
for the purpose of loan to suit his needs. The Customer would be
informed the procedure involved in servicing and closure of the
loan taken. 2.2. INTEREST RATES 2.2.1. Interest Rates for different
loan products would be made available through and in any one or all
of the following media, namely: Bank's website. Over phone, if
tele-banking services are provided. Through prominent display in
the Branches and at other delivery points. Through other media from
time to time. 2.2.2. Customers would be entitled to receive
periodic updates on the interest rates applicable to their
accounts. 2.2.3. On demand, customers can have full details of
method of application of interest. 2.3. REVISION IN INTEREST RATES:
Our Bank would notify immediately or as soon as possible any
revision in the existing interest rates and make them available to
the customers in the media listed in Para 2.2.1. Interest Rate
revisions to the existing customers would be notified within 3
working days from the date of change. 2.4. DEFAULT INTEREST/PENAL
INTEREST: a) Our Bank would notify clearly about the default
interest/penal interest rates to the prospective customers. 2.5.
CHARGES: Our Bank would notify details of all charges payable by
the customers in relation to their loan account. Our Bank would
make available for the benefit of prospective customers all the
details
relating charges generally in respect of their retail products
in the media specified in Para 2.2.1. Any revision in charges would
be notified in advance and would also be made available in the
media as listed in Para 2.2.1. Our Bank would clearly specify the
charge account for interest and charges, wherever necessary and get
a mandate for debiting the said charge account alongwith the
documentation. 2.6. TERMS AND CONDITIONS FOR LENDING: Our Bank
would ordinarily given an acknowledgement of receipt of loan
request and if demanded by the customer, a copy of the application
form duly acknowledged would also be given, as soon as the customer
chooses to buy a product of or service of his choice. Immediately
after the decision to sanction the loan, our Bank would show draft
of the documents that the customer is required to execute and would
explain, if demanded by the customer the relevant terms and
conditions for sanction and disbursement of loan. Loan Application
Forms, Draft documents or such other papers to be signed by a
customer should comprehensively contain all the terms and
conditions relating to the product or service of his choice.
Wherever possible, reasons for rejection of loan would be conveyed
to the customers. Before disbursement of loan and on immediate
execution of the loan documents, our Bank would deliver a copy of
the duly executed documents to the customers. 2.7. ACCOUNT
PRACTICES: Our Bank would provide regular statement of accounts,
unless not found necessary by the customers. Our Bank would notify
relevant due dates for application of agreed interest, penal
interest, default interest, and charges, if they are not mentioned
in the Loan applications, documents or correspondence. Our Bank
would notify in advance any change in accounting practices, which
would affect the customer before implementation. 2.8. INFORMATION
SECRECY: All personal information of the customer would be
confidential and would not be disclosed to any third party unless
agreed to by customer. The term 'Third Party' excludes all Law
Enforcement Agencies, Credit Information Bureau, Reserve Bank of
India, other Banks and Financial Institutions.
Subject to above Para, customer information would be revealed
only under the following circumstances, namely: If the Bank is
compelled by Law. If it is in the Public Interest to reveal the
information. If the interests of the Bank require disclosure. 2.9.
FINANCIAL DISTRESS: Our Bank would reckon cases of customer's
financial distress and consider them sympathetically. Customer
would be encouraged to inform about their financial distress as
soon as possible. Our Bank would adequately train the operational
staff to give patient hearing to the customers in financial
distress and would render such help as may be possible in our view.
2.10. GRIEVANCE REDRESSAL: Our Bank would have a Grievance
Redressal Cell/Department/ Centre within or outside the
organisation. Our Bank would make available all the details,
namely: Where a complaint can be made, How a complaint should be
made, When to expect a reply, Whom to approach for redressal of
grievance etc., to the customers individually on demand and through
the media listed in Para 2.2.1. (C) Response to a complaint whether
positive or negative or requiring more time for redressal would be
given within a maximum period of four weeks from the date of
complaint, unless the nature of complaint is such that requires
verification of voluminous facts and figures.
MODEL CODE COLLECTION OF DUES CODE FOR COLLECTION OF DUES AND
REPOSSESSION OF SECURITY I. Preamble: This Code for Collection of
Dues And Repossession of Security (CDRS Code), is a nonstatutory
code issued on voluntary basis. II. Applicability: This code will
apply to Union Bank Of India from 19th January 2004. III. Contents:
Introduction Dues Collection Policy Statement Security Repossession
Policy Statement General Guidelines Grievance Redressal 1.
Introduction: Union Bank Of India is committed to: Following fair
practices especially with regard to collection of dues and
repossession of security Fostering customer confidence and
long-term relationship. 2. Dues Collection Policy Statement:
Dignity and Respect to Customers is Union Bank of India's Debt
Collection Policy and the Bank do not follow policies that are
unduly coercive in collection of dues. Union Bank of India's dues
collection policy is built on courtesy, fair treatment and
persuasion. 3. Security Repossession Policy Statement: Union Bank
of India's Security Repossession Policy aims at recovery of dues in
the event of default and is not aimed at whimsical deprivation of
the property. The Policy recognizes fairness and transparency in
repossession, valuation and realization of security. 4. Guidelines:
4.1. All the members of the staff or any other person authorised to
represent Union Bank of India in dues collection or/and security
repossession would follow the guidelines set out below: 4.1.1.
General: Before taking action for collection of dues and
repossession of security, Bank would give
notice to the Borrower asking him to repay the dues and the
Borrower will be generally given minimum 15 days time to repay
dues. 4.1.2. Guidelines for Collection of dues: Customer would be
contacted ordinarily at the place of his choice and in the absence
of any specified place, at the place of his residence in the case
of retail customers and in the place of business or residence as
the case may be in the case of other customers. Identity and
authority to represent would be made known to the customer at the
first instance. Customer privacy would be respected. Interaction
with the customer would be in acceptable business language.
Customer calling time would be between 0700 and 1900 hours unless
the special circumstances of the borrower's business or occupation
demand otherwise. Customer requests to avoid call at a particular
time or at a particular place would be honoured as far as possible.
Time and number of calls and contents of conversion would be
documented. Customer would be provided with all the information
regarding dues at the time of notice of recall of loan and as and
when demanded by the Customer. All assistance would be given to
resolve disputes or differences in a mutually acceptable and in an
ordinary manner, if any as regards dues. During visits to
customers' place for dues collection, decency and decorum would be
maintained. Inappropriate occasions such as bereavement in the
family or such other calamitous occasions would be avoided for
making calls/visits to collect dues. Demeanor that would suggest
criminal intimidation or threat of violence would be scrupulously
avoided. 4.1.3. Guidelines for Repossession of Securities: Due
process of Law would be followed for repossession of securities
Bank would give one week's notice before taking possession
of/siezing securities In case Bank engages services of a
Recovery/Seizure Agent for repossession of securities then a notice
of such appointment will be given to the Borrower. Identity of
Recovery/Seizure Agent so appointed will be disclosed to you Such
Recovery/Seizure Agents will have a covenant with the Bank to be
bound by this Code. Any violation of Code by Recovery/Agent will be
viewed seriously and the Bank will take prompt action in preventing
the violation. Bank would an approved valuer value the securities
and ascertain fair market value before resorting to sale.
Ordinarily Bank would not sell the securities below the fair
market value unless the circumstances warrant. In the event of sale
of securities being done at a price below the fair market value
then Borrower would be given one opportunity to arrange for bidders
at or above the fair market value. Sale of securities will be
conducted only after expiry of 30 days from the date of notice of
sale. In case the borrower comes forward and reaches a settlment
and repays the dues of the Bank, then repossessed securities will
be returned within 10 days from the date of satisfaction of dues.
5. Grievance Redressal: 5.1. Internal procedures a. Staff and the
representives engaged for collection of dues and repossession of
securities will give assistance in the case customer/borrower
wishes to lodge a complaint. b. Within two weeks of receiving any
complaint, we will send a written acknowledgement. c. After
examining the matter, we will send our final or other response
within eight weeks. 5.2. Monitoring: a. Bank has a Nodal Officer to
ensure compliance of the Code. Bank's internal auditing procedures
make sure Bank meest the Code. In the event customer/borrower wants
to complain about the violations of the Code, Complaint maygiven to
Principal Code Compliance Officer (PCCO) Planning, Research &
Development Department Central Office, Union Bank of India, Union
Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400
021 Union Cash ELIGIBILITY Retired employees of Government / Semi
Government undertakings, Banks and other reputed private
organisations etc. who draw fixed income / pension through our
Bank. PURPOSE To meet financial requirements. TYPE OF LOAN: Demand
Loan repayable in installments with a maximum repayment tenure of
36 months Term Loan with repayment tenure of above 36 months and
maximum upto 48 months.
QUANTUM Upto Rs.1,00,000/- or 12 times the monthly pension,
whichever is less. MARGIN 25% in case of Deposit Receipts / NSC /
Bonds issued by Government of India / Financial Institutions. 50%
in case of Shares & Debentures. REPAYMENT 12 36 EMIs in case of
Demand Loan repayable in Installments Above 36 to 48 EMIs in the
case of Term Loan RATE OF INTEREST (w.e.f. 01.07.2009) A fixed
interest rate of 13.75% (Fixed) PROCESSING CHARGES (EXCLUDING
SERVICE TAX) NO Processing charges. SECURITY Pledge of Deposit
Receipts / Shares / Debentures of corporates of good standing, NSCs
Bonds issued by Government of India / Financial Institutions etc.
Where sufficient security is not available, personal guarantee of
spouse or a person who is the nominee under pension scheme is to be
obtained. In genuine cases, the Bank may consider this facility on
a clean basis. OTHER CONDITIONS Declaration is required from the
spouse who is eligible for family pension.
UNION HEALTH ELIGIBILITY
Any qualified medical practitioner / Dentist in the age group of
25 to 60 years with minimum three years experience and in the age
group of 25 to 60 years. Firms / Companies engaged in medical
profession in which Doctors / Dentist are Partners or Directors or
the Proprietor. QUANTUM
An amount equivalent to 75% of the equipment cost and other
Assets to be financed.
MARGIN
Minimum 25% of cost of equipments and other assets to be
financed. REPAYMENT
Maximum 7 years including initial moratorium period of 3/6
months - By Equated Monthly Instalments. RATE OF INTEREST (w.e.f.
01.07.2009)
A Fixed Interest rate of 12.50% for Individuals and 12.50% for
others. Interest rate will not undergo any change till full
repayment of the loan . PROCESSING CHARGES(EXCLUDING SERVICE
TAX)
0.50% of loan amount. SECURITY
Hypothecation of equipment / items purchased out of Bank
finance. Collateral security 50% of loan amount. EM of premises in
case the loan is for acquiring premises. OTHER CONDITIONS
Third Party gurantee is not mandatory No Prepayment penality if
the loan is adjusted by the borrower from his own verifiable
legitimate sources or genuine sale. However, 2% charged on an
average o/s. balance of last 12 months if loan is closed on take
over by other Banks / Financial Institutions. * Rate of Interest
prevailing on the date of sanction shall be applicable.1. Please
write or type in Block Letters. 2. Put a tick mark against
appropriate item. 3. Ensure that all information is correctly
filled in. If any detail is not applicable, please write N.A.
Purpose of Loan: 4. Enclose all required supporting documents and
Loan project
UNION HEALTH APPLICATION FORM
PERSONAL AND DETAILSAPPLICANTSurname Middle Name First Name
NAMECurrent Residential Address
Date of Birth (DDMMYY) Marital Status Number of Dependants
Status Qualification Occupation Name of the Employer Company / Firm
Address
Phone No. ____________ Age
Yrs
E-mail (if any) Male
Female Single Children Married Others -
Resident Non-Resident MBBS / MD / Other (pl specify) Employed
Self-Employed
EMPLOYMENT RECORD FOR SALARIED / SELF EMPLOYED
(Please mention the address of the office you are based at)
Designation No. of years in Current Employment / Business Office
phone No. Monthly Income Other Income No. of yrs in present occ.
Name of the Account Holder
Department / Section : Years :Employee No. (PAN) : Income Tax
Permanent a/c no.
Ext. (if any) : Fax: Rs Rs Yrs Name of the Bank Date of Salary
Receipt: Retirement Age Branch NameYear a/c opened
Yrs Account No.
BANK ACCOUNT DETAILS
DECLARATIONI / We declare that all the particulars and
information given in the application form are true, correct and
they shall form the basis of any loan UBI may decide to grant me /
us. I / We confirm that I / We have had no insolvency proceedings
against me / us nor have I / We ever been adjudicated insolvent and
further confirm that I / We have read the brochure and understood
the contents. I / We am / are aware that the Equated Monthly
Instalment comprising principal and interest is calculated on the
basis of quarterly rests. I / We agree that UBI may take up such
references and make such enquiries in respect of this application,
as it may deem necessary. I / We undertake to inform UBI regarding
any change in my / our occupation / employment and to provide any
further information that you may require. I / We also undertake to
authorise my / our employer(s) to deduct Equated Monthly
Instalments from my / our salary and remit the same to UBI directly
every month. UBI may make available any information contained in
this form, other documents submitted to UBI and information
pertaining to the loan to any institution or body. UBI may seek /
receive information from any source / person to consider this
application. I / We further agree that my / our loan shall be
governed by rules of UBI which may be in force from time to
time.
Applicants Signature
UNION HOME Special offer for existing home loan customers To
know more, click here ELIGIBILITY Indian Citizen - 21 years and
above. Either single account or joint account with other family
members viz.(father, mother, spouse or son ) with regular source of
income. Individuals who may be employed/self-employed in business
having regular income. A minimum of 40% marks as per investment
grade scoring chart(Internal method of the bank).
Purchase/construction of independent house/flat.
Repair/Improvement/Extension. Repayment of loan availed from
another agency/Bank/NBFC. For purchase/ construction of 2nd
property (independent house/flat) Plot sold by a
Government-recognized agency viz., HUDA, HOUSEFED and such others.
Max Rs. 300 Lacs for Mumbai, Delhi, Kolkata, Chennai, Bengaluru,
Ahmedabad, Hyderabad,Gurgaon, Noida and New Delhi. For other cities
Rs. 100 lacs Max. Rs. 10 lacs for repair. For loan up to Rs. 200
lacs, 20% of the cost of the property. For loan above Rs. 200 lacs,
35% of the cost of the property. Moratorium up to 18 months
wherever loan is taken for under construction flat or building. By
Equated Monthly Installment (EMI.)
PURPOSE
QUANTUM
MARGIN
REPAYMENT
The maximum repayment period should not exceed 25 years
(including moratorium) for construction / purchase of house/ flat
and 10 years for repair. Option of Flip/Step-up/Balloon methods of
repayments for the convenience of the borrowers.
RATE OF INTEREST ( w e f 15.02.2010) Loan upto Rs. 5 Lacs Tenor
Fixed Floating Upto 5 years >5 Years to 10 Years 9.75% N.A. BPLR
2.75% i.e . 9.00 % BPLR - 2.50 % I .e. 9.25 % >10 Years to 15
Years N.A. BPLR - 2.25 % i.e 9.50 % >15 Years to 25 Years N.A.
BPLR - 2.25 % i.e 9.50 %
Loan above Rs 5 Lacs upto 30 Lacs Tenor Fixed Floating Upto 5
years >5 Years to 10 Years 9.75% N.A. BPLR - 2.75% i.e . 9.00 %
>10 Years to 15 Years N.A. >15 Years to 25 Years N.A. BPLR -
2.25% i.e. 9.50%
BPLR - 2.50 % BPLR - 2.25 % i.e. 9.25 % i.e 9.50 %
Loan above Rs 30 Lacs upto 50 Lacs >5 Years to 10 Years N.A.
BPLR - 2.25 % i.e. 9.50 % >10 Years to 15 Years N.A. BPLR - 2.00
% i.e 9.75 %
Tenor Upto 5 years Fixed 10.75%
>15 Years to 25 Years N.A. BPLR - 2.00% i.e. 9.75%
BPLR - 2.50 Floating % i.e . 9.25 %
Loan above Rs 50 Lacs and upto 200 Lacs >5 Years to 10 Years
N.A. >10 Years to 15 Years N.A.
Tenor Upto 5 Years Fixed 10.75%
>15 Years to 25 Years N.A.
Floating
BPLR2.25% i.e . 9.50%
BPLR - 1.75 % I .e. 10.00 %
BPLR - 1.50% i.e 10.25 %
BPLR - 1.50% i.e. 10.25%
Loan above Rs 200 Lacs Tenor Upto 5 Years Fixed Floating N.A.
BPLR-1.75% i.e. 10.00% > 5 Years to 10 Years N.A. BPLR-1.25%
i.e. 10.50% >10 Years to 15 Years N.A. BPLR-1.00% i.e. 10.75%
>15 Years to 25 Years N.A. BPLR-1.00% i.e. 10.75%
BPLR = 11.75% with effect from 01.07.2009 PROCESSING CHARGES
0.50% of loan amount subject to a maximum of Rs.15000/- plus
service tax as applicable 50% of the processing charges plus
service tax as applicable at the time of application 50% of the
processing charges plus service tax as applicable on acceptance of
sanction
The Processing charges have been waived under the festive offer
till 14th Feb, 2010 PREPAYMENT PENALTY No prepayment penalty if the
loan is adjusted by the borrower from his own verifiable legitimate
sources of income or genuine sale. However 2% charged on an average
o/s. balance of last 12 months if loan is closed on take over by
other banks/financial institutions. VALUE ADDED SERVICE Credit card
will be issued free of annual fees No hidden or built-in costs
Quick processing and disposal of loan applications Flexible
repayment options
GUARANTEE Third party guarantee is not mandatory.
List of Builder tie up details Special offer for existing home
loan customers
ELIGIBILITY: Existing home loan borrowers under Union Home loan
who have: sanctioned loan limits of more than Rs. 10 lacs AND a
satisfactory repayment track record of 2 years or more PURPOSE: For
purchase of new 4-wheeler only RATE OF INTEREST: Up to 3 years
9.50% (Fixed) Above 3 years 10.00% (Fixed)
QUANTUM OF LOAN: Existing home loan quantum Eligible amount for
Union Miles, as per the repayment capacity Up to Rs. 3 lacs Up to
Rs. 5 lacs Up to Rs. 10 lacs Up to Rs. 20 lacs
Above Rs. 10 lacs up to Rs. 20 lacs Above Rs. 20 lacs up to Rs.
30 lacs Above Rs. 30 lacs up to Rs. 50 lacs Up to Rs. 50 lacs
SECURITY:
Collateral of the house under Union Home will be extended to the
Union Miles loan. OTHER TERMS AND CONDITIONS: All other terms and
conditions as per Union Miles. * Offer Valid till 30.09.2010
UNION RENT SCHEME WHO CAN AVAIL Owners of large commercial /
office spaces rented out to large corporates, MNCs, banks, PSUs,
our Bank, etc. in Metro/urban/semi-urban/ rural areas. ELIGIBILITY
Individuals /partnership firms/ corporates. PURPOSE To meet
liquidity mismatches / any other productive purpose or to meet
contingencies TYPE OF FACILITIES Term Loan QUANTUM OF FINANCE
Based on future rent receivables subject to 75% of the gross
rental income for the residual lease period less (advance rent
received+ property tax + income tax + other statutory dues of the
lessor) or 75% of the market value of the property whichever is
less. MARGIN
25% RATE OF INTEREST (w.e.f. 08.12.2008) (BPLR=12.50%)
Period Upto 3 Years Above 3 Years SECURITY
Rate of Interest BPLR + 1.75% i.e. 14.25% BPLR + 2.25% i.e.
14.75%
Primary: Assignment of receivables and recording of power of
attorney with lessee.
Collateral: First charge on property rented out or any other
property of a value not less than 133% of the loan amount.
PROCESSING FEES
1% of loan amount with a minimum of Rs 5000/REPAYMENT
In equated instalments at the same frequency at which rent is
received in a maximum period of 7 years or the residual lease
period whichever is less. DOCUMENTATION
Agreement of loan and power of attorney. Tripartite Agreement
between the lessor, the lessee and the Bank.OrIrrevocable power of
attorney from the lessor in favour of the Bank for collection of
rent. OR An irrevocable power of attorney from the lessor to
collect the rent which should be duly registered with the lessee.
Deed of Guarantee.
UNION MILE
Union Miles Scheme is offered to individuals /firms for vehicle
finance for thier personal use. ELIGIBILITY Individuals above 18
years of age Permanent employee of Central/State/Defence/Police
Force/Public or Joint Sector Undertaking/reputed firms/ established
Educational Inst. Professional/Businessmen having regular income.
Borrower has at least minimum services to liquidate the loan 1 year
prior to retirement. Firms / Companies.
PURPOSE
For Purchase of new two/four wheelers, for personal or
professional use Second hand vehicles upto 3 years old also
eligible.
QUANTUM
Four Wheeler- 4 times the net annual income as per ITR/salary
slip subject to a maximum loan of Rs 40 lacs for new vehicle and Rs
10 lacs for old vehicle Two Wheeler- 4 times the net annual income
as per ITR/salary slip subject to a maximum loan of Rs 1 lacs for
new vehicle MARGIN
15% of on road price (Ex-Showroom + registration + Insurance +
Road Tax) 50% of cost of old vehicle
REPAYMENT
Four Wheelers - A Maximum of 60 months in Equated Monthly
Installments(EMIs). Two Wheelers - A Maximum of 36 months in
Equated Monthly Installments(EMIs). Under Tie-up ------------4
Wheelers - A maximum of 72 EMIs ( Maruti, Hyundai, Tata Motors)
RATE OF INTEREST (w.e.f. 15.02.2010)
Period 4 wheelers (new car) Upto 3 Years Over 3 Years to 5 Years
2 Wheelers Upto 3 Years Above 3 Years to 5 Years Old Cars(Not Older
than 3 Years)
Rate Of Interest 11.00% p.a 11.25% p.a
12.75% p.a 13.25% p.a 13.25% p.a
PROCESSING CHARGES (EXCLUDING SERVICE TAX)
Two Wheelers Rs. 250 Four Wheelers Rs. 500 per vehicle for Loan
upto Rs. 2 Lacs. Four Wheelers Rs. 1000 per vehicle for Loan over
Rs. 2 Lacs.
SECURITY
Hypothecation of vehicle financed by the Bank. Bank's lien to be
got noted with the transport authorities.
PREPAYMENT PENALTY No prepayment penalty if the loan is adjusted
by the borrower from his own verifiable legitimate sources of
income or genuine sale. However , 2% charged on an average o/s
balance of last 12 months if loan is closed on take over by other
bank/financial institutes GUARANTEE
Guarantee of the spouse. In case unmarried, third party
guarantee with sufficient means.
UNION MILES / UNION COMFORT APPLICATION FORM
AFFIX RECENT PHOTOGRAPH OF APPLICANT WITH SIGNATURE
1. Please write or type in Block Letters. 2. Put a tick mark
against appropriate item. 3. Ensure that all information is
correctly filled in. If any detail is not applicable, please write
N.A. 4. Enclose all required supporting documents.
PERSONAL AND EMPLOYMENT DETAILSAPPLICANTSurname Middle Name
First Name
Purpose of Loan: Amt.:
Loan
NAMECurrent Residential Address
Phone No.
E-mail (if any) -
Date of Birth (DDMMYY) Marital Status Number of Dependants
Status Qualification If Professional Occupation Name of the
Employer Company / Firm Address (Please mention the address of the
office you are based at) Designation No. of year in Current
Employment business Office phone No. Monthly Income Other Income
No. of yrs in present occ.
____________ Age
Yrs
Male
Female Single Children Married Others -
Resident Non-Resident Matric / Under-Graduate / Post-Graduate /
Ph.D Doctor / Engineer / Lawyer / C.A. / MBA / Any other (Please
specify) Employed Self-Employed
EMPLOYMENT RECORD FOR SALARIED / SELF EMPLOYED
Department / Section : Years :Employee No. (PAN) : Income Tax
Permanent a/c no.
Ext. (if any) : Fax: Rs Rs Yrs Date of Salary Receipt:
Retirement Age Yrs
FINANCIAL INFORMATIONSavings, Investments Etc. Particulars
Applicant Co-applicant (Rs) (Rs) Savings in Bank ____________
__________ Loans Taken / ProposedPlease indicate below all loans
taken / proposed from employer, Provident Fund etc., and
instalment(s) payable per month including interest against each
loan.
(Rs) (months) Source Term Of Loan Instalment Outstanding
(Rs) Monthly Amount Paya
Immovable property (specify)
________________________________
______________________________________ _ Current balance in
Provident Fund (your share) ________________ Other Assets (specify)
1. ___________ 2. ___________ LIC Policy(ies) ___________ Postal
Life Insurance Policy(ies) Amount ___________ Maturity Dates
___________ _________ _________ _________ _________ _________
ble Applicant: Employer __________ Provident Fund __________
Credit Society __________ Others (specify) __________ Co-applicant
Employer __________ Provident Fund __________ Credit Society
__________ Others (specify) __________ _________ _________
_________ _________ _________ _________ _________ _________
_________ _________ _________ _________ _________ _________
_________ _________
BANK ACCOUNT DETAILSName of the Account Holder
Name of the Bank
Branch Name
Year a/c opened
Account No.
GENERAL [APPLICABLE TO APPLICANT AND CO-APPLICANT(IF ANY)]
Yes
No
1. Have you or your spouse earlier applied to UBI for a loan ?If
yes a) Loan a/c no. _______ b) Other details ____________
3. What other security will you be Are you a able to provide
citizen(s) of ________________________________ India? _____ 4.
Please select the mode of repayment Yes convenient to you: Tick (
against the ) No appropriate box.a) Deduction of monthly instalment
By your employer
Do you belong tob) Post dated cheques
SC NA
ST
2.
Have you or your spouse given Perrsonal Guarantee(s) ?
c)
Standing instructions to bankers
If yes, a) On behalf of ___________________ b) Name of the
organisation______________ c) Amount ______________
Any other (please specify) ____________ Not applicable for
employed applicants, whose employers have a deduction at source
arrangement with UBI?
d)
Do you have any Credit Cards? Yes / No If Yes, Card No.: Issuers
name:
REFERENCES
(NAMES AND ADDRESSES OF TWO REFEREES WHO ARE NOT RELATED TO
YOU)
UBI may make such 1. enquiries from the referees if it deems
necessary. Phone: Off:
2.
Res: Phone: Off:
Res:
DECLARATIONI / We declare that all the particulars and
information given in the application form are true, correct and
they shall form the basis of any loan UBI may decide to grant me /
us. I / We confirm that I / We have had no insolvency proceedings
against me / us nor have I / We ever been adjudicated insolvent and
further confirm that I / We have read the brochure and understood
the contents. I / We am / are aware that the Equated Monthly
Instalment comprising principal and interest is calculated on the
basis of quarterly rests. I / We agree that UBI may take up such
references and make such enquiries in respect of this application,
as it may deem necessary. I / We undertake to inform UBI regarding
any change in my / our occupation / employment and to provide any
further information that you may require. I / We
also undertake to authorise my / our employer(s) to deduct
Equated Monthly Instalments from my / our salary and remit the same
to UBI directly every month. UBI may make available any information
contained in this form, other documents submitted to UBI and
information pertaining to the loan to any institution or body. UBI
may seek / receive information from any source / person to consider
this application. I / We further agree that my / our loan shall be
governed by rules of UBI which may be in force from time to
time.
A pplicants Signature
FOR OFFICE USE ONLYAll the documents obtained as per scheme,
verified with original (wherever appicable) and found to be in
order
(signature & Name of Processing Officer)
SANCTIONED / DECLINED
(Signature & Name of Sanctioning Authority)
UNION EDUCATION ( APPLY ONLINE)Special Education Loan Scheme for
IIMs/ XLRI/ MDI/ SPJIMR, click here
For Other Special Education Loan Scheme click here OBJECTIVE
& PURPOSE The scheme aims at providing financial assistance on
reasonable terms to the poor and needy students to undertake basic
education and to meritorious students that they may pursue higher
or professional or technical education. ELIGIBILITY Student
Eligibility : Indian citizen Secured admission to the concerned
institute in India or abroad through an appropriate selection
process and cleared the qualifying examination,if any
Courses Eligibility(Indicative List) : a. Studies in India
Graduation/Post-Graduation Professional courses Management courses
Graduation: For job-oriented professional or technical courses
offered by reputed universities Post-Graduation: MCA, MBA, MS and
such other courses Courses conducted by CIMA, London, CPA, USA.,
and such other institution
b. Studies Abroad :
EXPENSES CONSIDERD FOR LOAN Fee payable to Institute/Hostel.
Examination/Library/Laboratory fees Purchase of
Books/Equipments/Instruments/Uniforms Caution Deposit,Building
Fund/refundable deposit supported by Institution
Bills/receipts,subject to the condition that the amount does not
exceed 10% of the total tuition fees for the entire course. Travel
Expenses/passage money for studies abroad Purchase of
computers-essential for completion of the course Insurance premium
for the student borrower Any other expense required to complete the
course, such as, Study Tours,Project Work,Thesis, etc.
QUANTUM OF LOAN Need-based finance subject to repayment capacity
of the parent or student with margin and upto the following
ceilings For studies in India - Up to Rs. 10 lacs For studies
abroad - Up to Rs. 20 lacs MARGIN No margin for loans up to Rs.
4.00 lacs . However, for loan of higher amounts, the margin
requirement is 5% for inland studies and 15% for studies abroad.
Scholarship/assistance to be included in margin. Margin maybe
brought in on pro-rata basis as and when disbursement is made.
REPAYMENT Repayment holiday or Moratorium on loan: Course period +
1 year OR 6 months after job placement, whichever is earlier.
Starting from this point, the loan is to be repaid in 5-7 years
after completion of course period/moratorium. RATE OF
INTEREST(w.e.f 01.07.2009) The rate of interest is fixed
Loan Amount
Rate of Interest For Male Student 11.75% For Female Student
11.25%
Upto Rs. 4.00 Lakhs Above Rs. 4.00 Lakhs 12.50% 12.00% and Upto
Rs. 7.50 Lakhs Above Rs. 7.50 Lakhs 12.00% 11.50% Concession of 1%
interest rate is available if interest is serviced regularly during
the course/moratorium period. COLLATERAL SECURITY Upto Rs. 4.00
Lakhs : No collateral security required Above Rs. 4.00 Lakhs and
upto Rs. 7.50 Lakhs : no collateral security required. A suitable
third party guarantee is required. Above Rs. 7.50 Lakhs :
Collateral security of suitable value is required.
INSURANCE Life insurance of the borrower is compulsory to the
tune of Loan Amount CONDITIONS The Parent/Guardian of the student
who is availing loan needs to join in as coobligator/joint
borrower. Loan will be sanctioned/disbursed at the branch nearest
to permanent residence/place of domicile of the parents.
Special Education Loan Schemes ELIGIBILTY: Students who secure
admission to the following institutes: S. P. Jain Institute of
Management and Research (SPJIM), Dubai and Singapore Indian School
of Business (ISB), Hyderabad National Institute of Technology
(NITs) Indian Institutes of Technology (IITs) National Institutes
of Fashion Technology (NIFT) Birla Institute of Technology &
Science (BITs) Vellore Institute of Technology (VIT) Indian
Institute of Science (IISC) Symbiosis Institute of Business
Management (SIBM)
Short duration/Executive courses at the above mentioned
institutes (except for ISB, Hyderabad) are not covered under the
scheme. PURPOSE: To meet tuition fees, cost of books, hostel, mess
charges, equipment including laptop, living expenses etc. MARGIN/
QUANTUM OF LOAN/ RATE OF INTEREST: Institute Margin Qua Rate of
Interest ntu m M Female ale 10 10.00%
ISB(1-year PGPM)
Uniform margin of 5%, Rs
irrespective of amount of loan ISB (PGPM for Senior
Executives)
20 .5 lakhs 0 % 10 10.50% .5 0 %
IITs
NIL
Rs 10 10.25% 7.5 .5 lakhs 0 % Rs 10 10.25% 7.5 .5 lakhs 0 %
NIFT
NIL
NITs
Upto Rs 4 lakhs:-NIL; Rs 11 11.00% More than 4 lakhs and 7.5 .0
less than 7.5 lakhs:-5% lakhs 0 % Rs 11 11.00% 7.5 .0 lakhs 0 % Rs
11 11.00% 7.5 .0 lakhs 0 % Rs 11 11.00% 7.5 .0 lakhs 0 % Rs 11
11.00% 7.5 .0 lakhs 0 % Uniform margin of 15% Rs , irrespective of
loan 15 11 11.00% .0
BITs
VIT
IISC
SIBM
SPJIM (GMBA)
amount PROCESSING CHARGES: Nil REPAYMENT PERIOD: 7 years
(maximum)
Lakh 0 s %
REPAYMENT HOLIDAY/MORATORIUM PERIOD: For Post Graduate Programme
in Management for Senior Executives at ISB Interest will be
serviced during the course period EMI will start from the
succeeding month after completion of the course. For all others
Course Period + 1 year or 6 months after securing employment
whichever is earlier. SECURITY: NO collateral security is required;
Guarantee of parent or spouse is required. For further details
contact your nearest Union Loan Point branch.Disclaimer : This is a
brief description of the scheme. For complete information, please
contact the Branch manager at any of the Union Loan Point. The rate
of interest on the date of sanction is applicable.
Union Education Scheme for Commercial Pilot Training Programme /
Course Nature of course/training programme Commercial Pilot
Training / Course Eligibility Should be Indian National. Should
have secured admission to the relevant course through admission
test. Should have secured admission to the foreign institutions for
studies abroad. Duration of the Course 12-24 months Type Of
Institution 1. For Course / Training programme in India: Government
or recognized Private Institute approved by Director general Of
Civil aviation, Government Of India.
2. For course/training programme abroad: The course/ training
programme should have been offered by recognized institutions
abroad approved by competent authority in that country eg. in U.S.A
the Federal Aviation Administration, Govt. Of U.S.A. The licenses
issued by such institution should be convertible into corresponding
Indian Licences in case the applicant desires to take up employment
in India after completion of course/ training abroad, as per
directives of Director General Of Civil aviation, Government of
India. Quantum Of Loan Nil margin up to Rs.4 lacs. Min.5 % margin
for loans above Rs. 4.lacs in India. Min.15% Margin for loans above
Rs. 4 lacs for studies abroad. Scholarships/ assistance to be
included in Margin. Margin to be brought in year to year whenever
disbursement made on pro rata basis. Rate Of Interest Male Female
For loans up to Rs. 4 lacs 11.75% 11.25% For Loans above Rs.. 4
lacs and Below 7.5 lacs 12.50% 12.00% For Loan above Rs. 7.5 lacs
12.00% 11.50% (1% concession if interest is serviced during
moratorium period) Security
No security up to Rs. 4 lacs. Loan above Rs. 4 lacs and upto Rs.
7.50 lacs- personal guarantee to the satisfaction of the bank. For
loans above Rs. 7.50 lacs- suitable collateral security/third party
guarantee acceptable to the bank. Life insurance policy for a sum
not less than the loan to be taken on the life of the student/
applicant and assigned in favor of the Bank .
Union Bank of IndiaAPPLICATION FORM FOR UNION
EDUCATIONDetailsName of the applicant Name of Co-applicant Address
of the applicant & Co-applicant Whether SC/ST/OBC etc. Date of
Birth DDMMYYYY Yes No Age Yes No Nationality: (If yes, enclose
certificate) Whether related to any employee / Director of Bank:
..Yrs.Months (Enclosed Certificate as proof of age) Sex Male Female
Martial Status Single Married
Information Ack. Date:
Father / Guardian Name & Address Occupation Monthly Income
Educational Qualification Examin Year Marks Division Details of
Scholarship, if any ation obtained (%) Passed Details of the
proposed course Full time course: Yes No Name of Duration Name
& Address of Prospects course of Course College / University
Detail of estimated expenditure per annum Year Tuition Fee (Rs.)
Cost of Hostel (Rs.) text books / instrumen ts (Rs.) 1 2 3 4 5
Financial requirements a. In India Nature of facility b. Abroad
Nature of facility Details of securities offered (for loans above
Rs.4 lacs only) Sl. No. Detail Market Value (Rs.) Rs. (If guided by
RBI Subsidized scheme, enclose income certificate of Parent)
s of Securi ty In case of studies aboard, whether the admission
is secured in the foreign university and whether the in principle
sa foreign exchange is obtained from the authorized dealer / RBI?
Yes No SB A/c. No.
Particulars of the guarantor: Name & Address
Occupation / Profession Direc t (Rs.) Indirect (Rs.) Total
(Rs.)
Monthl y Income
Net Wort h
I/We am/are willing to stand as guarantor/s Place : Date :
Guarantor(s) Signature Declaration : 1. The particulars furnished
above are true and correct. 2. The advance will be used for the
purpose for which it is granted. 3. Any change in my address for
communication/contact will be intimated to you. 4. My/Our banking
business will be confined to your bank only and I/We will not
borrow from any other bank/source during the pendency of the
advance with you, without your consent in writing. Place : Date :
Applicant & Co-applicant Signature
UNION SMILE
ELIGIBILITY Pensioners & salaried class who are drawing
their pension/ salary through Union Bank of
India. PURPOSE
To meet unforeseen medical expenses, timely payment of dues to
State Electricity Board, Telephone, School fees and water charge
and other such needs. QUANTUM
Maximum 90% of one months pension/salary credited in the account
MARGIN
10% REPAYMENT
Entire amount of overdraft and interest should be recovered
while crediting next pension/salary. Otherwise, it can be recovered
in installments within a period of 3 months, if so required by
borrower. RATE OF INTEREST (w.e.f. 01.07.2009)
2% of the amount of overdraft in the account every month.
Interest to be recovered as and when the pension /salary is
credited. PROCESSING CHARGES
Nil.
SECURITY
Nil. OTHER CONDITIONS
The facility can be allowed on an ongoing basis by liquidating
earlier dues. Pensioners of Union Bank of India are also
eligible.
Union Mortgage Scheme Scheme for financing against Mortgage of
immovable property ELIGIBILITY Any Individual in the age group of
18-60 years of age owning residential/ commercial property
(land/plot/ building) and who are Income-tax assesses having net
monthly income of Rs.10,000/- pm in the case of salaried persons
and an annual income of Rs.1.20 lacs p.a. in the case of non
salaried perosns. Earning family members income can also be clubbed
to arrive at the maximum loan quantum. Individuals who are not
Income Tax assessee are also eligible for this scheme, subject to
production of proof of income acceptable to the Bank. A minimum 40
points as per investment grade scoring chart. PURPOSE
To meet any personal expenditure of varied needs like marriage
of children, higher education, medical expnses or any unforeseen
expnses and also as liquidity finance. QUANTUM OF LOAN Maximum
Minimum Metro 50 lakh 1 lakhs Urban 25 lakh 1 lakhs
subject to 36 times of gross monthly income of salaried persons
OR
2 time the Net annual Income in case of others (Income as per
the latest IT return less taxes payable) whichever is lesser.
NATURE OF FACILITY
Facility can be given in the form of Term Loan or Secured
Overdraft. However, SOD Facility will not be considered for
salaried persons MARGIN
50% of the fair market value of the property mortgaged as per
the latest valuation report not older than six months from an
approved valuer of the Bank. Fresh valuation at the cost of the
borrower(s) once in three years required during currency of
advance. REPAYMENT
Loan amount together with interest is to be repaid in maximum 84
equal monthly installments. Post-dated cheques fot the 84 EMIs will
be collected up-front. Subject to closure of the loan with full
adjustment prior to the retirement in case of salaried class. RATE
OF INTEREST (LATEST RATE OF INTEREST WILL BE APPLICABLE)
- Fixed Rate : 15.25% - Floating rate : BPLR + 2.50% i.e.14.25%
Present BPLR is 11.75% PROCESSING CHARGES
One time fee of 0.50% of the loan amount plus service tax as
applicable collected up front. SECURITY
Equitable Mortgage of non-encumbered residential house/flat,
commercial or industrial property situated in Metro, Urban &
Semi-urban centres only in the name and possesion of the borrower
and/or his/her family member. OTHER CONDITIONS
No Prepayment penalty if the loan is adjusted by the borrower
from his own verfiable legitimate sources or genuine sale. However,
2% charged on an average outstanding balance of last 12 months if
loan is closed on take over by other Banks/Financial Institutions.
Application for loan under Union Smile(For Pensioners/salaried
class)
From:
Date:
To The Branch Manager, Union Bank of India, ________________
Branch,
Dear Sir, Request for loan
I request you to grant me loan of Rs.__________in my S/B
account. My personal details are furnished hereunder:
Name of the Applicant:
Address: Current Residential Address with Telephone No and
Mobile N0.
Permanent Telephoe No.
Address
with
Age
:
SB account number to which Monthly salary / pension credited to
pension / monthly salary is credited the SB account (mention in
rupees)
Name of organization giving salary in case salaried class/
Pension Account number in case of pensioners
Purpose of Loan
Loan amount requested
Rs.
Margin
Repayment
Details of other accounts maintained with the Branch/Bank and
other Banks Name of the Type Bank and Branch Account of A/c No.
Average balance the Last 6 months for
Declaration by the Applicant(1)!/We am/are declare that I /we
am/are having the SB account no: with your Branch, where in pension
/ salary proceeds are credited every month. I/We authorize the
Bank:-to recover entire amount of loan while crediting the next
month pension / salary -to recover within a period of 3 months
(2)I/We further authorize the bank to charge 2% interest on the
amount of Overdraft for every month.
(3) I/We authorize Union Bank of India to exchange, share or
part with all the information relating to my/our loan
details/repayment history/information to other Union Bank
Branches/Banks/Financial Institutions/Reserve Bank of
India/CIBIL/Credit Bureau/Agencies/Statutory Bodies as may be
required and shall not hold Union Bank of India and/or its agents
liable for use of this information.
Yours faithfully,
(Signature)
Name: Pension a/c/Salary a/c:
List of Documents Attached: (1) Loan Application Form (2)Latest
Salary Slip
UNION SHARES
ELIGIBILITY
Individuals holding shares/debentures/bonds either in their name
or jointly. PURPOSE
Personal purposes like Education, Housing, Consumer Goods and
such other needs. QUANTUM OF ADVANCE
The maximum amount that can be granted is up to Rs.20.00 Lacs
for security held ONLY in DEMAT Form. PERIOD
3 years for Loan repayable in installments. SOD facility to be
renewed/reviewed every year. RATE OF INTEREST (w.e.f. 01.07.2009)
(BPLR = 11.75%)
Rate of Interest BPLR+4.50% i.e. 16.25% SECURITY
Pledge of shares of those companies approved by the Bank (Please
refer to nearest branch of Bank for the list of approved companies)
OTHER CONDITION
No PrePayment penalty for self-closure. However, 2% charged on
an average o/s. balance of last 12 months if loan is closed on take
over by other Bank/Financial InsitutionsUnion Share - Loan
Application
From:
Date: To The Branch Manager Union Bank of India ___________
Branch Dear Sir, Sub: ~~~ Request for loan - against
shares/debentures/bonds ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. I/We request you to sanction a Term Loan / SOD facility of
Rs. _____________ against security of the shares/debentures/bonds,
details of which are given in enclosed sheet.
2. I/We undertake to pledge the said shares/debentures/bonds to
your Bank as security for the loan/advance given to me/us.
3.
I/We,
am/are
maintaining
my/our
demat
account
with______________________ shares are held with them in demat
form.
( depository name) and the
4.
The details of my DP account are as follows: a) Depository Name:
b) DP a/c no: c) No.of shares held:
Amount:
5. I/We shall abide by all the terms and conditions of the Banks
scheme. I/We enclose demat latest copy depicting the holding of
above shares/debentures/bonds in my / our names/s, along with
copies of PAN card, latest Income Tax return, salary slip etc.
6.
My/our personal details are furnished in the enclosure.
Thanking you. Yours faithfully,
(Signature)
ANNEXURE TOUNION SHARE LOAN APPLICATION:
PHOTO
NAME/s :
____________________________________________________
I.
ADDRESS:Residential _______________________
_______________________ _______________________
_______________________ _______________________ Residing at the
above address since last ________Yrs _______months ( In case the
period of stay is less than 2 furnish previous address also)
Office _______________________ _______________________
_______________________ _______________________
_______________________
yrs
Telephone: _____________ Mobile No. ____________________
Telephone _____________
E-mail: ( Office)________________________
(Personal)_______________________ Permanent Address:
___________________________________________________
_____________________________________________________________________
____________________________________________________________________
City/Town____________________State: _____________Pin Code:
______________ Tel No with STD Code__________________ Mobile
No:_______________________ II. Details of shares held in Demat Form
and offered as Security: Company No. of Face value Amt Present
market Name Shares of shares invested value of shares( as held
(original on the date of investment) application)
III. Details of loan requested: a) Loan amount Requested b)
Purpose of Loan c) Nature of facility d) Margin e) Repayment period
( No. of installments) ( in case of Term Loan) IV. Service
Particulars/Income Particulars : Years of Service: __________
Present employment with: _____________ ( also give address) Nature
of Business : ____________ : : : Term Loan / SOD : : Rs.
Monthly Salary (Gross): _________ Monthly Salary (Net):
_________
Monthly Expenditure/:______________ Deductions Surplus
:______________
Business Income: Annual Gross Income:____________ Annual Net
Income :_____________ Annual Expenditure/ Deductions
:______________ Surplus :
V. Bank Account Particulars: VI. Whether any other loan is taken
from any bank / branch, if so particulars: any Bank? Give
particulars
Name of the Bank & Branch
Type of Accoun t (SB/CD)
Accoun t since when
Details of borrowings, if any, from Banks ( including Union Bank
of India)Name of Bank Branch Nature of limit and amount Present
outstandin g
(1)
I/we declare and agree that:
-the shares mentioned hereinabove are in demat form -the loan
amount will not be used for speculative purposes or to acquire or
retain controlling interest in a company -the above
share/debentures/bonds are in the approved list of securities of
your bank -the valuation of securities as carried out by the bank
for calculation of eligible loan amount shall be final
-in case, the value of shares/debentures/bonds depleted due to
adverse market conditions /fluctuation and falls below the
outstanding amount ( taking into consideration margin ), the
shortfall amount will be adjusted/advance reduced/additional
securities will be provided ( strike off whichever is not
applicable) (2) I/We further declare and affirm that the
information furnished hereinabove is true to the best of our
knowledge and belief and in case any information is found false,
the bank has right to recall the advance and initiate appropriate
action as it may deem fit.
(3) I/We authorize Union Bank of India to exchange, share or
part with all the information relating to my/our loan
details/repayment history/information to other Union Bank
Branches/Banks/Financial Institutions/Reserve Bank of
India/CIBIL/Credit Bureau/Agencies/Statutory Bodies as may be
required and shall not hold Union Bank of India and/or its agents
liable for use of this information.
Date: List of documents attached:
Applicants Signature
-Passport size photograph of the applicant (s) -Latest salary
certificate and form-16 in case of salaried persons -Latest IT
return copy -Depository Participant statement of account depicting
the above shares in demat form -Proof of residence and identity
(Ration card/Driving License/Telephone Bill/Electricity Bill/Voter
ID/Passport) -Copy of PAN Card ( Mandatory )
UNION COMFORT ELIGIBILITY Age 18 yrs completed. Permanent
employee of Central Government / State Government/ Defence / Police
Force / Autonomous bodies / Public / Joint Sector undertaking /
Corporations / Limited Companies / Firms / Established Educational
Institutions. Individuals having regular income. Tax payers,
Non-I-T permissible if annual pay Rs.1 lac or more and net take
home annual pay Rs.0.40 lac - after deducting EMI of present loan.
Salary accounts with financing branch. Min. 40% marks as per
investment grade scoring chart.
PURPOSE To meet personal expenses or purchase of consumer
durables. QUANTUM Nil. REPAYMENT In 36 Euated Monthly
Instalments(EMIs). Repayment starts from the nest month of
disbursement of loans. 6 months net salary not exceeding Rs. 1 lac
for salaried class. For others, 50% of annual income as per last 2
IT returns (not exceeding Rs.1 lac.)
MARGIN
RATE OF INTEREST (w.e.f. 01.07.2009) 15.00%. Concession in the
rate of interest can be considered by Regional Head in case of
group borrowers. Rs. 100 upto Rs. 10,000/Rs. 250 upto Rs.
50,000/Rs. 500 above Rs. 50,000/-
PROCESSING CHARGES (EXCLUDING SERVICE TAX)
SECURITY One Guarantor having means equivalent to the loan
amount, Hypothecation Of Asset wherever applicable. OTHER
CONDITIONS Proof of Income (Salary Certificate). Proof of Residence
(latest Tel. Bill/Electricity Bill/Employer's Certificate)
Irrevocable undertaking letter from the employer for recovery of
installment from salary every month and to remit to bank directly.
Irrevocable undertaking by the borrower authorising the Bank to
recover the loan installments from his/her salary A/c./SB A/c. with
the Branch.
* Prevailing Rate of Interest will be applicable as on date of
sanction.
Union Top-up Scheme ELIGIBILITY Existing home loan borrowers
(Standard Assets with regular EMI repayment) who Are
salaried/professional & self employed, agriculturists or
business men having regular source of Income. Have repaid minimum
24 EMIs in Home loan account and Where net take home pay/monthly
income is not be less than 35% of gross monthly income/earnings
after considering all deductions including the EMI of the proposed
TOP-up Loan. PURPOSE To meet any type of expenditure in respect of
the House viz. repairs/renovation/ remodeling / furnishing etc.
NATURE OF FACILITY Term Loan (Floating) QUANTUM The maximum
amount of loan can be extended upto 50% of EMIs repaid subject to
minimum of Rs.50,000/- to Maximum of Rs.5,00,000/-
RATE OF INTEREST (w.e.f. 01.07.2009)
Union Top- (Original Housing Loan Limit Up upto Rs.30 lacs) BPLR
1.75% i.e. 10.00% Term Loan (Floating)
(Original Housing Loan Limit Above Rs.30 lacs) BPLR 1.00% i.e.
10.75% (Floating)
MARGIN 50% [i.e. only 50% of the amount already repaid will be
considered as top-up loan subject to maximum cap]. PROCESSING
CHARGES 0.50% of the Top-up Loan amount. SECURITY Existing
Mortgaged House will continue as security (the house for which
housing loan is extended and is secured by EM.). GUARANTEE
Guarantee is applicable wherever guarantee is taken in the existing
Home Loan.
REPAYMENT The maximum repayment period is of 5 years or left
over period for the borrower before he attains retirement or 60
years of age which ever is earlier. Term loan is subject to review
every year.
TAX BENEFITS Accrued interest on Top-up loan is eligible for
exemption under section 24 of Income Tax Act, provided the loan is
granted for the purposes of renovation, additions, repairs or
reconstructions of house property. However, if the loan is granted
for furnishing of house, such exemption is not available. (The
Installments towards repayment of Principal is not eligible for
exemption under Income Tax).
UNION BANK OF INDIAAPPLICATION FOR UNION TOP UP LOAN:
Personal and Employment Details:
Name
APPLICANT
CO-APPLICANT
Current Residential address Telephone [Res] Mob.No&e-mail
add. Date of Birth [DD/MM/YY] Age: Yrs [DD/MM/YY] Age: Yrs No
Relationship applicant with the
Qualification Marital Status Status Occupation Designation
Monthly Salary Rs. Income/earnings Other Income Name address of
Employer /Business Department Office No Telephone Extn. Fax Exten
________yrs. Age. Fax Retirement and the Rs. Source: Rs. Rs.
Source: Single/Married Resident/Non Resident Employed/Self employed
Single/Married Resident/Non Resident Employed/Self employed
No. of yrs. present occupation
In _______yrs Retirement Age.
Status of present accommodation LOAN REQUESTED:
Own / Rented / Family / Employer
Amt. of Loan
Nature of Facility reqd. [TL/SOD ]
Purpose of Loan
Tenure
EXISTING HOME LOAN DETAILS: Name of the Borrower [s] Date of
Sanction of Loan Amt. of Loan Repayment Schedule No. of EMIS: Amt.
of EMI
Date of commencement Repayment Details of mortgaged
property:
of
1. Address of the House mortgaged to the Bank 2. Name of the
owner 3. Date of Mortgage 4. Weather 2nd charge is created on the
same property? If yes furnish details 5. Details of other loans
availed from the Bank against extension of EM of the same property
Present market value:
Yes/ No
Nature of facility & limit
Amt. outstanding
BANK ACCOUNT DETAILS:
Name of the a/c Holder
Name of the Branch Bank
CD/SB A/c
Account No.
I/We declare that all the particulars and information given in
the application are true and correct , which form the basis for UBI
to decide to grant top up loan to me/us. I/ we declare that we
shall abide by the declaration given at the time of availing
Housing Loan. I/we further declare that I/we shall abide by the
rules of UBI and terms and conditions of the said loan, which may
be in force from to time. Signature Signature of co-applicant[For
Office Use only]
of
Applicant
PROCESS CUM SANCTION1.Details of installments remitted No. of
installments_ Total
Amount [Rs]
2. Whether the Installments are paid regularly as per stipulated
repayment schedule 3. Whether the account figured in EAS/SMA at any
point of time ? [ If yes, the applicants are not eligible for top
up loan ] 4. Eligible amount of loan 5. Amount of recommended 6.
Nature of facility Top up loan
YES / NO
YES / NO
Rs. Rs. Term Loan / Secured Overdraft
6. Repayment Schedule [in case the a. Number of EMIs : facility
b. Amount of EMI : Rs. sought is in the form of Term Loan] c.
Repayment to commence from: 7.Rate of Interest 8.Margin 9.Security
10.Details of personal guarantee 11.Documents to be obtained 50%
1.Extension of EM of House Property situated
at___________________________ Name: Means: Rs. 1.DP Note 2. Letter
of Extension of Mortgage 3.Declaration 12.Processing Charges 0.50%
of the loan amount
Recommended for sanction
[Name of the Officer/ Designation ] [
Sanctioned/Declined
[Name of the Officer/Designation] Branch Seal
DECLARATION[ To be stamped with appropriate stamp duty as
applicable in the respective States as per Stamp Act of those
States ]
The Branch Manager,
Union Bank of India, ________________Branch, Dear Sir/Madam,
Sanction of Loan under UNION TOP UP LOAN SCHEME In consideration of
Union Bank of India having sanctioned a loan of
Rs._________________ [ Rupees
_____________________________________] under Union Top-up Loan
Scheme, I / we hereby declare and state that the said loan amount
will be utilized for the purpose of carrying out
repairs/renovation/furnishing/face lifting of my/our house situated
at ___________________________________________________
_______________________________________________________________________.
Yours faithfully,
Signature of the Borrower [s] Place: Date: Address of the
Borrower:
Union Mortgage Scheme Scheme for financing against Mortgage of
immovable property ELIGIBILITY
Any Individual in the age group of 18-60 years of age owning
residential/ commercial property (land/plot/ building) and who are
Income-tax assesses having net monthly income of Rs.10,000/- pm in
the case of salaried persons and an annual income of Rs.1.20 lacs
p.a. in the case of non salaried perosns. Earning family members
income can also be clubbed to arrive at the maximum loan quantum.
Individuals who are not Income Tax assessee are also eligible for
this scheme, subject to production of proof of income acceptable to
the Bank. A minimum 40 points as per investment grade scoring
chart. PURPOSE
To meet any personal expenditure of varied needs like marriage
of children, higher education, medical expnses or any unforeseen
expnses and also as liquidity finance. QUANTUM OF LOAN Maximum
Minimum Metro 50 lakh 1 lakhs Urban 25 lakh 1 lakhs
subject to 36 times of gross monthly income of salaried persons
OR 2 time the Net annual Income in case of others (Income as per
the latest IT return less taxes payable) whichever is lesser.
NATURE OF FACILITY
Facility can be given in the form of Term Loan or Secured
Overdraft. However, SOD Facility will not be considered for
salaried persons MARGIN
50% of the fair market value of the property mortgaged as per
the latest valuation report not older than six months from an
approved valuer of the Bank. Fresh valuation at the cost of the
borrower(s) once in three years required during currency of
advance.
REPAYMENT
Loan amount together with interest is to be repaid in maximum 84
equal monthly installments. Post-dated cheques fot the 84 EMIs will
be collected up-front. Subject to closure of the loan with full
adjustment prior to the retirement in case of salaried class. RATE
OF INTEREST (LATEST RATE OF INTEREST WILL BE APPLICABLE)
- Fixed Rate : 15.25% - Floating rate : BPLR + 2.50% i.e.14.25%
Present BPLR is 11.75% PROCESSING CHARGES
One time fee of 0.50% of the loan amount plus service tax as
applicable collected up front. SECURITY
Equitable Mortgage of non-encumbered residential house/flat,
commercial or industrial property situated in Metro, Urban &
Semi-urban centres only in the name and possesion of the borrower
and/or his/her family member. OTHER CONDITIONS
No Prepayment penalty if the loan is adjusted by the borrower
from his own verfiable legitimate sources or genuine sale. However,
2% charged on an average outstanding balance of last 12 months if
loan is closed on take over by other Banks/Financial
Institutions.
Photograph of applicant
Union Bank of India
Photograph Of Coapplicant
APPLICATION FOR UNION MORTGAGE
I/we request for a loan of Rs. under Union Mortgage scheme for
the purpose of
________________________________________________________________________
I/we furnish my/our particulars as below:Personal Information:
01.Name ( In block letters) 02.Fathers/Husb ands name
Applicant:
Co-applicant:
03.Relationship with applicant / co-applicant 04.Pan number
05.Addres (Res): Telephone No. Mobile No. e-mail ID:
Permanent Address: Telephone No.
Office Address:: Telephone No. Fax No. e-mail ID 06.Date of
birth [DD/MM/YY] Age: 07.Sex 08.Marital Status Male : Female
Single/Married Yrs [DD/MM/YY] Yrs Male Female: Single/Married Age:
:
09.No.of Dependents 10.Status
Children: Others: Resident/Non Resident
Children: Others: Resident/Non Resident
JOB RELATED INFORMATION11.Occupation Employed/Self employed
Employed/Self employed
Name of Employer with address 12.In employed indicate case
,please Designation
Telephone numbers( office )
Employee number
No. of yrs in present employment Date of retirement
Length of service
Any other details
13.In case of SelfEmployed, please indicate
Name of firm
Nature of business/profession
Address of Firm:
Telephone numbers( Ffirm)
No. of yrs in line of business
Years since when in present business
LOAN REQUESTED:
Amount of loan Type of facility (Rs) (Term Loan/SOD)
Margin
Purpose
DETAILS OF PROPERTY TO BE MORTGAGED: Names of owners of
property
Description of property
( house/flat/commercial/industrial ) Survey Nos/D. No of the
property
Address/location of property
Market value of property and basis of valuation If the property
is partially let out /leased out, details there of such as period
of lease, terms of lease etc. (enclose a copy of lease agreement)
Details of insurance of property
Age of building
Residual ife of building
Distance of property from financing branch
Whether the mortgaged ?
property
to
be
Yes / No a) b) non-agricultural and free from al encumbrances
has a clear & marketable title
Yes /
No
c)
Self occupied/rented out
Any litigation is pending against the property in question
before any court of law ( including suits under Rent Control Act)
?
Income details
Gross monthly salary/ Annual income
Rs.
Net monthly/ annual salary
Rs.
Monthly/annual expenditure/deductions
Rs.
Monthly surplus/annual surplus
Rs.
( Salaried class to show income ,expenditure, surplus details on
monthly basis whereas non-salaried class on annual basis.
Non-salaried applicants, should attach a separate sheet showing
annual income less expenses and available surplus)
DETAILS OF ASSETS & LIABILITIES :
Assets Cash on hand
Rs.
Liabilities Loan taken from Bank Employer
Rs.
Provident fund Credit society Family/friends Others other
Bank Deposits Bank Name Savings
Details of liabilities
Bank Name Fixed deposits
Shares & Bonds (give name & description)
Investments in -PPF -NSCs -LIC policy ( give surrender value)
-Others
Whether stood as guarantor, if so the extent of liability
Immovable properties (give details) such as address, original
purchase price, present market value
Movable assets( give details )
Other assets (give total)
Total
Total
CREDIT CARD DETAILS:
Name of issuing Bank
Credit Card number
Expiry date
Credit Limit:
Present outstanding
Amount overdue
BANK ACCOUNT DETAILS:
Name of the a/c Holder
Name of the Branch Bank
CD/SB A/c No:
Avg balance maintained
EXISTING BANK BORROWING DETAILS:
Name Bank
of
the Name of Nature the Branch of
Amount of Limit
Present outstanding
Overdue s, if any (Rs
facility
(Rs in lacs)
(Rs. in lacs)
In lacs)
GUARANTOR DETAILS: Full name S/o Address (Residence /
employment) Employment / Business details Telephone(Res) Age
Telephone(Off) Sex: Female Male / Full name S/o Address (Residence
/ employment) Employment/ Business details Telephone(Res) Age
Telephone(Off) Sex: Female Male /
INCOME DETAILS OF GUANTOR
Gross Monthly / Annual Net Monthly / Annual
Deductions/expenditure Monthly/Annual Surplus Monthly/Annual
Rs. Rs. Rs. Rs.
Gross Annual
Monthly
/ /
Rs. Rs. Rs. Rs.
Net Monthly Annual
Deductions/expendit ure Monthly/Annual Surplus
Monthly/Annual
(Enclose statement of assets & liabilities of the
guarantor/s)
Declaration by the Applicant (s) I/we declare that all the
particulars and information given in the application form or true,
correct and they shall form the basis of any loan Union Bank of
India may decide to grant me / us. I/we confirm that I/we have no
insolvency proceedings against me / us nor have I/we ever been
adjudged insolvent and further confirm that I/we confirm have read
the brochure and understood the contents. I/we am /are aware that
the equated monthly instalments comprising principal and interest
is calculated on the basis of monthly rests. I/we agree that Bank
may take up such reference and may make such enquiries in respect
of this application as it may deem necessary. I/we undertake to
inform the Bank regarding any change in my/our
occupation/employment and to provide any further information that
you may require. I/we also undertake to authorize my /our employers
to deduct EMIs from my/our salary and remit the same to the Bank
directly every month. UBI may make available any information
contained in this form , other documents submitted to UBI and
information pertaining to the loan to any Institution or body. The
Bank may seek r/receive information from any source/person to
consider this application. I/we further agree that my/our loan
shall be governed by rules of Union Bank of India which may be in
force from time to time. I/We authorize Union Bank of India to
exchange, share or part with all the information relating to my/our
loan details/repayment history/information to other Union Bank
Branches/Banks/Financial Institutions/Reserve Bank of
India/CIBIL/Credit Bureau/Agencies/Statutory Bodies as may be
required and shall not hold Union Bank of India and/or its agents
liable for use of this information. I/we further declare and agree
that the information furnished hereinabove is true to the best of
our knowledge and belief and incase any information is found to be
false at a later date, the bank has right to recall the advance and
initiate appropriate action as it may deem fit. SIGNATURE OF
APPLICANT APPLICANT DECLARATION OF GUARANTOR SIGNATURE OF CO-
I/We am/are willing to stand as guarantor/s for the proposed
advance as per the above request Signature of guarantor List of
documents to be attached:1) 2) 3) 4) 5) Completed application form
Passport size photograph of each applicant Proof of income, salary
certificate, Income tax returns etc. Proof of Identity PAN Card/
Voters ID/ Passport/ Driving License Proof of Residence Recent
Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/
Voters ID 6) Proof of business address in respect of businessmen/
industrialists 7) Sale Deed, Agreement of Sale, Letter of
Allotment, Non encumbrance certificate, Land/ Building Tax paid
receipt etc. (as applicable and subject to satisfaction report from
our empanelled lawyer) 8) Copy of approved plan and approval from
the Local Body 9) Statement of Bank Account/ Pass Book for last 6
months 10)Original NOC under the Provisions of ULC Act 11)Copy of
the Order permitting Land Conversion in case of conversion of
Agricultural land 12)Non Encumbrance Certificate for 30 years
13)Copy of the land tax receipt/building tax receipt Copy of the
Allotment letter of Housing Board/Builder/Co-op. Society
14)Statement of assets and liabilities of the guarantor.
Union Reverse Mortgage (URM) Union Reverse Mortgage is a scheme
to provide a source of additional income for Senior Citizens of
India who own self-acquired and self-occupied house property in
India. ELIGIBILITY Number of Borrowers : Single Or Jointly with
Spouse in case of a living spouse. Minimum age requirement of the
first borrower is 60 year. Number of surviving spouses on the date
of sanction of loan should not be more than one Minimum Age
requirement of the spouse is 55 year.
PURPOSE OF THE LOAN Up-gradation,renovation,extension and
insurance of residental property. Medical emergency expenditure for
maintenance of family. Supplementing pension/other income.
Repayment of an existing loan taken for the residental
property.
Meeting any other genuine need as may be specified by the
borrower and agreed to by the lender.
RESIDENCE The property against which the borrower proposes to
raise the loan should be his/her permanent primary residence. The
residence (house/flat) should be self-acquired and self owned.
Proof of owner ship of residence to be established. Borrower(s)
will be required to inform the bank when they cease to use the
residence as their permanent residence.
QUANTUM OF LOAN The Loan amount along with interest will be 70%
of the assessed market value of the property subject to Maximum of
Rs. 50 Lacs Minimum of Rs. 1 Lac
MARGIN 30% (inclusive of interest upto maturity) SECURITY The
loan shall be secured by way of equitable mortgage of residential
property. TENURE Minimum tenure based on age of borrower as given
below :Age of main borrower 60-65 Years More than 65 Years Minimum
Tenure of Loan 15 years 10 Years
DISBURSEMENT Monthly payout or a combination of payout and
lumpsum
RATE OF INTEREST
10.50% p.a.(Fixed) Interest to be reset once in every 5
Years
PROCESSING FEE 0.5 % of the loan amount or Rs. 10000, whichever
is lower
PREPAYMENT
Option to prepay the loan anytime during the tenure of the loan.
NO prepayment penalty These are the retail loans provided by the
union bank .the case study has been conducted analysing the past
one year trend in various retail loans given by the union loan
point at sector 35,the underlying case study includes the
statistical data about all the retail loans ,the trend followed and
the reasons behind it. CASE STUDY UNION LOAN POINT (SEC-35)
Risk Management1.1 Risk is inherent part of Banks business.
Effective Risk Management is critical to any Bank for achieving
financial soundness. In view of this, aligning Risk Management to
Banks organizational structure and business strategy has become
integral in banking business. Over a period of year, Union Bank of
India (UBI) has taken various initiatives for strengthening risk
management practices. Bank has an integrated approach for
management of risk and in tune with this, formulated policy
documents taking into account the business requirements / best
international practices or as per the guidelines of the national
supervisor. These policies address the different risk classes viz.,
Credit Risk, Market Risk and Operational Risk. 1.2 The issues
related to Credit Risk are addressed in the Policies stated below;
1.2.1 Loan Policy.
1.2.2 Credit Monitoring Policy. 1.2.3 Real Estate Policy. 1.2.4
Credit Risk Management Policy. 1.2.5 Collateral Risk Management
Policy. 1.2.6 Recovery Policy. 1.2.7 Treasury Policy. 1.3 The
Policies and procedures for Market Risks are articulated in the ALM
Policy and Treasury Policy. 1.4 The Operational Risk Management
involves framework for management of operational risks faced by the
Bank. The issues related to this risk is addressed by; 1.4.1
Operational Risk Management Policy. 1.4.2 Business Continuity
Policy. 1.4.3 Outsourcing Policy. 1.4.4 Disclosure Policy. 1.5
Besides, the above Board mandated Policies, Bank has detailed
Internal Control Principles communicated to the business lines for
ensuring adherence to various norms like Anti-Money Laundering,
Information Security, Customer complaints, Reconciliation of
accounts, Bookkeeping etc. 2.0 Oversight Mechanism:
2.1 Our Board of Directors has the overall responsibility of
ensuring that adequate structures, policies and procedures are in
place for risk management and that they are properly implemented.
Board approves our risk management policies and also sets limits by
assessing our risk appetite, skills available for managing risk and
our risk bearing capacity. 2.2 Board has delegated this
responsibility to a sub-committee: the Supervisory Committee of
Directors on Risk Management & Asset Liability Management. This
is the Apex body / Committee is responsible for supervising the
risk management activities of the Bank. 2.3 Further, Bank has the
following separate committees of top executives and dedicated Risk
Management Department: 2.3.1 Credit Risk Management Committee
(CRMC): This Committee deals with issues relating to credit
policies and procedure and manages the credit risk on a Bank-wide
basis. 2.3.2 Asset Liability Management Committee (ALCO): This
Committee is the decisionmaking unit responsible for balance sheet
planning and management from the angle of risk-return perspective
including management of market risk. 2.3.3 Operational Risk
Management Committee (ORMC): This Committee is responsible for
overseeing Banks operational risk management policy and process.
2.3.4 Risk Management Department of the Bank provides support
functions to the risk management committees mentioned above through
analysis of risks and reporting of risk positions and making
recommendations as to the level and degree of risks to be
assumed.
The department has the responsibility of identifying, measuring
and monitoring the various risk faced the bank, assist in
developing the policies and verifying the models that are used for
risk measurement from time to time. 3.0 Credit Risk
3.1 Credit Risk Management Policy of the Bank dictates the
Credit Risk Strategy. 3.2 These Polices spell out the target
markets, risk acceptance / avoidance levels, risk tolerance limits,
preferred levels of diversification and concentration, credit risk
measurement, monitoring and controlling mechanisms. 3.3
Standardized Credit Approval Process with well-established methods
of appraisal and rating is the pivot of the credit management of
the bank. 3.4 Bank has comprehensive credit rating / scoring models
being applied in the spheres of retail and non-retail portfolios of
the bank. 3.5 The Credit rating system of the Bank has eight
borrower grades for standard accounts and three grades for
defaulted borrowers. 3.6 Proactive credit risk management practices
in the form of studies of rating-wise distribution, rating
migration, probability of defaults of borrowers, Portfolio Analysis
of retail lending assets, periodic industry review, Review of
Country, Currency, Counterparty and Group exposures are only some
of the prudent measures, the bank is engaged in mitigating risk
exposures. 3.7 The current focus is on augmenting the banks
abilities to quantify risk in a consistent, reliable and valid
fashion, which will ensure advanced level of sophistication in the
Credit Risk Measurement and Management in the years ahead. 4.0
Market Risk
4.1 Bank has well-established framework for Market Risk
management with the Asset Liability Management Policy and the
Treasury Policy forming the fulcrum for procedures, processes and
structure. It has a major objective of protecting the banks net
interest income in the short run and market value of the equity in
the long run for enhancing shareholders wealth. The important
aspect of the Market Risk includes liquidity management, interest
rate risk management and the pricing of assets and liabilities.
Further, Bank views the Asset Liability Management exercise as the
total balance sheet management with regard to its size, quality and
risk. 4.2 The ALCO is primarily entrusted with the task of market
risk management. The Committee decides on product pricing, mix of
assets and liabilities, stipulates liquidity and interest rate risk
limits, monitors them, articulates Banks interest rate view and
determines the business strategy of the Bank. 4.3 Bank has put in
place a structured ALM system with 100% coverage of data on both
assets and liabilities. To measure liquidity and interest rate
risk, Bank prepares various
reports such as Structural Liquidity, Interest Rate Sensitivity,
Fortnightly Dynamic Statement etc. Besides RBI reporting many
meaningful analytical reports such as Duration Gap analysis,
Contingency Funding Plan, Contractual Maturity report etc. are
generated at periodic intervals for ALCO, which meets regularly.
Statistical and mathematical models are used to analyze the core
and volatile components of assets and liabilities. 4.4 The
objective of liquidity management is to ensure adequate liquidity
without affecting the profitability. In tune with this, Bank
ensures adequate liquidity at all times through systematic funds
planning, maintenance of liquid investments and focusing on more
stable funding sources. 4.5 The Mid Office group positioned in
treasury with independent reporting structure on risk aspects
ensure compliance in terms of exposure analysis, limits fixed and
calculatio
