Andhra Bank (A Govt. of India Undertaking) Dept.

of Information Technology, D Block, III Floor, "Cyber Gateway", Hitec City, Madhapur, HYDERABAD - 500 081 ______________________________________________________________________ CBS Doc. No. 219 Dated: 08.12.2010 LAPS MODULE: SPECIAL MENTION ABOUT THE RETAIL PRODUCTS 1. CLEAN LOANS: A) Loan Product Selection: Clean Loans Salaried (for salaried customers) (ZO Sanction) Clean Loans Non-Salaried (for professional and self-employed customers) (ZO Sanction) Clean Loans LIC Agents (ZO Sanction) Clean Loans Pensioners (for Pensioner customers) (Sanction at branch level will be allowed subject to their discretionary powers.) Clean Loans Branches with CAP Limits (to be selected by those branches which are given separate CAP limits by their ZOs for sanction of clean loans for select group of customers. Sanction at branch level will be allowed subject to their discretionary powers. B) Loan Product Page: Type of Proposal: Select Fresh / Repeat for sanction of salary as the case may be.

8 / 10 times of gross

C) APPRAISAL: In case of sending the proposal to ZO the portfolio details are to be filled in. Sanction Power: Please enter the designation in whose sanction power the proposal falls. This will be printed in the appraisal note. Sanction Level: Branch / ZO / HO. If ZO is selected then the Clean Loan is assessed at 18 times of gross salary as if it is being processed in ZO as the proposal will be sent to ZO for sanction.

2. HOUSING LOANS: A) Loan Product Selection: Housing Loan General Housing Loan with 8.5% (Special Scheme) B) Loan Product Page: Amount Requested: Amount applied by the applicant Project Cost: Total Project cost (Flat Cost + Registration expenses + other expenses = Total Cost) Select Interest Type Floating except for 8.5% special scheme. For 8.5% Special Scheme select fixed interest type. Loan Period: This period is inclusive of holiday / gestation period. Rate of interest applicable for the total loan period will be populated. Max 258

months i.e. 240 EMI appropriate period i.e. max 18 months. Eg. loan period should be only.

+ 18 months gestation will be populated. Select the repayment should be max. 240 EMI + Gestation If gestation / holiday period is 12 months then total 252 (i.e. 240 + 12) give loan period as 252 months

Lock payment during Holiday: This selection is most important as depending upon this selection only the Repayment start date, Interest demand effective date etc. will be taken which will have bearing on flow structure / overdues calculation. Principal only: i.e. No recovery towards principal during holiday period. Only interest and charges to be repaid as and when debited during the holiday period. Interest only: i.e. No recovery towards interest during holiday period. This is applicable for staff loans only. Both: No recovery at all during the holiday period. i.e. interest during holiday period is to be capitalized on repayment start date through HLARA in Finacle. Location Type: Select Metro / Urban / Semi-urban / Rural: depending upon the location selected the scheme maximum amount will be populated by the system in assessment. Purpose Type: select the correct purpose i.e. Construction / Out-right purchase / take over. Depending upon this selection the appropriate margin will be calculated on the project cost. Eg. If construction is selected 25% margin will be maintained, if out-right purchase is selected 15% margin will be maintained and if take over is selected 0% margin is maintained on the project cost to assess the eligible amount. PROPOSED ASSET: This is the most important screen wherein the data related to the proposed property will be given and some other important inputs for assessment of eligibility will be taken here. The details of the property entered in this screen will be taken as primary security by default. Purpose of Loan: Select appropriate purpose. Asset Type: Flat / House Depending upon the above selection the screen input details will be displayed accordingly. Survey No and Address: This is the address which will be taken as address of the proposed asset / property. This address will be printed in the appraisal note / sanction letter as location of the proposed flat / house and also in the proposed RF255 / RF256 legal document as address of the proposed property i.e. primary security. Provide the details of the proposed Flat i.e. Area, undivided share of land, floor and specific flat no etc. in case of purchase of flat. In case of House give the relevant particulars.

Expected Rent per month: Enter the expected rent from the proposed property here. 50% of this will be taken for calculation of eligible loan amount in assessment. Income tax benefit after availing loan: This is the monthly income tax benefit the applicant is going to get after acquiring the proposed house / flat. Please ensure to take the monthly income tax deduction as per salary slip or the monthly income tax benefit derived by the applicant whichever lower is to be taken. This amount will be added back to the net salary of the applicant to arrive at 30% take home pay eligibility. Estimated Cost and Sources: Enter the data as per the estimate given by the vendor / applicant. The total at both sides should tally and the total should tally with the project cost entered in the loan product page.

Legal Opinion: This is a simplified data capture. Enter the details which will be printed in the appraisal note. This is not mandatory. Valuation Entry: This is a simplified data capture. Enter the details which will be printed in the appraisal note. This is not mandatory. Pre-sanction Report: This is the field inspection report to be given by the Branch Manager / Officer. C) CO-APPLICANT / GUARANTOR: To select the co-applicant / co-obligant / guarantor. In case of co-applicant there is provision for adding the gross income and net salary of the co-applicant to that of the main applicant in arriving at the eligibility. On selection of the co-applicant if you select yes for the option include income for eligibility then the income of the co-applicant is added to that of the main applicant and eligibility will be calculated and also the net salary of the co-applicant will be added to that of the main applicant to arrive at the 30% take home pay salary.

3. EDUCATIONAL LOANS: A) LOAN PRODUCT SCREEN: Enter the Amount requested and project cost. Loan period: Here please give the exact repayment period i.e. so many EMIs / Months without adding the gestation period / course period. Because the repayment schedule is hard coded while printing in appraisal note / sanction letter / communication of sanction to borrower etc. Further while opening loan account in Finacle care is taken to add the course period + one year as gestation period to the repayment period given as above to arrive at the total loan period.

HOLIDAY PERIOD: Do not enter any period here. As the holiday period is calculated as above please do not visit / touch this field at all in case of education loans. Co-applicant / Guarantor: Add the co-obligant(s). EDUCATIONAL LOAN TAB: Click this tab to enter the full particulars of the Educational Loan details such as student particulars, qualifying examination details, scholar ship details, Course details, course expenses etc. In case of Educational Loan-abroad please mention the expenditure / cost in the foreign currency in the relative tab which will be printed in the appraisal note. The following are the sub-tabs in this main tab. STUDENT PARTICULARS: Select the name of the father / mother / guardian as co-obligant and fill up the other relevant particulars. The passport particulars are to be entered in the customer profile itself which will be populated here. The issuing office and issue date of VISA, if any, have to be entered here. If any change is there subsequently also in case of renewal etc. it may be modified in this tab only. EDUCATIONAL DETAILS: Enter the qualifying examination details / previous qualifications details record by record by invoking the new button. SCHOLARSHIP DETAILS: Enter the scholarship details if any. This is only for information purpose only. COURSE DETAILS: This is the most important tab. The following fields are the important ones and care has to be taken while entering the data. Duration of the Course: The total duration of course is to be entered here. The remaining course period is to be entered here when financing for an already studying student in the middle of the course. This period is taken in calculating the total loan period while opening loan account in finacle automatically through interface module. Enter the expected monthly income and expenditure after completion of the course has to be entered. This data is captured in the appraisal note and the future income will be shown. The entry of this data is logical as the primary security in case of educational loan is assignment of future income. COURSE EXPENSES: Here the cost of the course items of the cost and means / sources of finance including the scholarship amount, if any, have to be entered. The total of Cost of estimates should tally with the total of Means of Finance and both should tally with the project cost.

4. CONSUMER LOANS: PROPOSED ASSET: The particulars of the proposed asset / consumer durable have to be entered here. Then the assessment will be done on the basis of the margin also. The asset particulars entered will be taken automatically as primary security in the proposal / sanction etc. 5. VEHICLE LOANS: Product Selection: Vehicle Loans Vehicle Loans Vehicle Loans Vehicle Loans Vehicle Loans Vehicle Loans

Two Wheeler (New) Four Wheeler (New) 2nd hand Four Wheeler Premium Car Loan Vanitha Vahan Two Wheeler Vanitha Vahan Four Wheeler

PROPOSED ASSET: The particulars of the proposed vehicle Brand name, model, cost of vehicle, cost of accessories, Garage certificate particulars in case of 2nd hand vehicle, dealer / supplier particulars etc have to be entered. Then only the cost of vehicle will be taken into consideration and assessment will be made by the system as per the margin prescribed along with sub-limits for the accessories.

6. MORTGAGE LOANS: The details of the mortgaged property are to be entered in the Land and Buildings tab under Assets and Liabilities screen. The security is to be shown as primary by selecting type of security as Primary. Then 50% of the value of the property will be taken as one of the eligible criteria.

7. RENT RECEIVABLES: RENT DETAILS TAB: PROPERTY DETAILS: Total property and the let out portion detail may be entered in this screen. LESSEE DETAILS: Lessee particulars have to be entered in this screen. Key Financial indicators of the Lessee may be entered in this screen by selection of YES and the Details button. DETAILS OF RENT RECEIVABLES: Enter the Lease period, Rent receivable per month, Total TDS amount for the entire period. Then system automatically calculates the Maintenance amount at 15% and arrives at the Net Rent Receivables. In the assessment the system shows the Eligible loan amount.

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