PRIME COMMERCIAL BANK LIMITED

Prime Bank is the vision of a group of Pakistani professionals

with extensive domestic and international banking and finance
experience. They teamed up in 1992 with a selected group of
successful and like-minded business houses in Pakistan and
overseas. Some of the foreign investors belong to a highly
regarded, very sizeable and well-diversified business group of
Saudi Arabia.

During the initial years, Prime Bank’s strategy was focused on

continuing improvement of internal procedures and operating
structures, to ensure a greater control over the quality of its
operations.

Commercial Banking activities were initiated at the time of

inception in 1992. During 1993, two more business divisions i.e.
Corporate Banking and Financial Services were added. By 1996,
Prime Bank’s countrywide network of seventeen Branches was in
place and Consumer Banking activities were accordingly launched.
Under the Bank’s on going branch expansion program twenty-six new
branches have been added during the years 2001, 2002 and 2003
while seven more branches were opened during 2004. This raised
the total number of branches to fifty focusing primarily on the
middle market commercial banking segment, consumer banking
initiatives as well as agricultural, housing and financing of
small and medium sized enterprise.

Total Assets of Prime Bank during the period from June 1992 to
December 2003 has grown at an annual compound rate of about 26
percent to Rs.30 billion. Within this period, Shareholders’
Equity grew from Rs.371 million to Rs.1.5 billion, Deposits to
Rs.21.6 billion and Advances (net) to Rupees. 13.6 billion.
Profit before tax grew from Rupees. 1 million for the half year
to June 1992 to Rs.430 million for the year ended 31st December
2003.

After thirteen years of well controlled, yet sure and successful

operations, the Bank is now poised to move forward rapidly to be
at the cutting edge of financial services combining highly
efficient delivery systems with continuous product innovation.
Therefore, development of superior Human Skills and the latest
Information Technology platform are the cornerstones of Prime
Bank’s overall strategy to be in the exclusive club of winning
banks of the future
Vision

To be the Preferred Bank in the Region

Core Values

o Passion to succeed
o Striving for customer delight
o Integrity in all our dealings
o Free and open communication
o Promoting team spirit
o Fostering best practices leading to good governance
o Creating an enabling environment for individual performance
and collective growth

Mission

To provide exceptional value to all our stakeholders by competing

fairly in our niche markets on the basis of superior service,
innovative products and highest level of professionalism based on
customer orientation, team work, creativity and operational
excellence while maintaining high ethical standards as a socially
responsible corporate citizen

Business Philosophy

The Bank is committed to be a sophisticated, prominent and

professional institution, providing one window service to its
customers. The Bank visualizes itself as a full service
institution dedicated to the specialized needs of its niche
markets.

Prime Bank's activities primarily cover the provision of a full

range of banking services to the commercial middle market
segments of the country, with increasing emphasis in future on
the growth of the consumer finance, agriculture and small and
medium enterprise sectors.

Prime Bank's operating strategy is focused on continuous

improvement of internal procedures and operating systems to
provide better

Services to its customers by ensuring effective control on the

quality of its operations
 ATM Card "Prime Cash"

Launched in August 2003

INTRODUCTION

The ATM is envisaged to be a major point of contact between the

Bank and the customer and the required customer service standards
must be maintained.

SCOPE OF ACTIVITY

The ATM handles a set of typical customer transactions that were

hitherto handled at the Branch counter. For all of these
transactions, customer should insert a magnetic stripe card,
branded as 'Prime Cash’. This Network service will give its
customers access not only to the Bank's ATMs but also ATMs of
other Banks/Financial institutions, locally or internationally.

SALIENT FEATURES:

Enjoy fast and convenient banking round the clock

With Prime bank’s ATM card, you can bank 24 hours a day - 365
days a year. Enjoy a host of banking services including cash
withdrawals, balance inquiries, statement & PIN changing
facility.
 Following services are available on "Prime Cash"
o Cash withdrawal
o Account Balance inquiry
o Mini statement (Last 10 statements)
o Pin Change

Pin number consist of 4 digits

 If pin code has been entered wrong three time, the
machine will capture the card

Cash Withdrawal

You can withdraw cash 24 hours a day 7 days a week.

 How to make a withdrawal

 Insert your card in the card slot provided. Enter your ATM
PIN number
  The ATM screen will provide you with a number of options
 Select "WITHDRAWAL" option
 Enter or select the required amount
 Now press "ENTER" or "OK" key to complete the transaction
 Take your Card, Cash and receipt

Make a Balance Inquiry

You can check your balance on Prime bank’s ATM

Mini Statement

Prime bank’s ATMs will provide you an instant mini-statement of

your last 10 transactions.

PIN Changing Facility

Prime bank’s ATM lets you change your Personal Identification

Number (PIN). Regularly change your PIN to ensure secrecy.

ELIGIBILITY CRITERIA

ATM cards will be issued to Individual and Joint Account

customers maintaining Pak Rupee checking accounts relationship
with the Bank like Savings, Current, Royal Profit etc.

ATM Cards will be issued to following customer types, subject to

Executive Committee's approval.

Individual and Joint account customers maintaining Current

Account with an approved Overdraft facility

Sole proprietary business account customers who have established

a Current account relationship (including approved Overdraft
facility) with the Bank
ATM cards may also be issued to those customers who can read but
cannot write and consequently cannot sign the Bank's documents.
In such cases, the Branch Manager will approve issuance of ATM
card after determining that the customer is capable of operating
the ATM machine and maintaining confidentiality of PIN. Due care
and caution will be exercised while issuing the card viz. the
photograph of the customer must be on branch record and the right
hand thumb impression of the customer on the ATM application must
be witnessed by two employees of the bank and counter-signed by
an Officer.

If only one of the joint account holders has a subsidiary account

as well, his card will be operative for both accounts. However,
the card of the second joint account holder will be restricted to
the principal account only.

Upon receipt of a specific request, an additional card may be

issued to a Joint Account customer against a joint application.
In such cases, cash withdrawal limit should be split between the
two cards.

Branch Manager is authorized to access ATM application and refuse

the same if it is not according to the Bank's established
criteria.

CASH WITHDRAWAL LIMIT

Gold 25,000

Silver 10,000

CARD APPROVAL

The Branch Manager should approve all ATM Card application forms.

ISSUANCE AND ANNUAL FEE

Gold Rupees 300 issuance fees (same annually)

Silver Rupees 100 issuance fees (same annually)

PROCESSING TIME

4 working days

FEE VARIATION

Financial transaction 20 to 40 rupees

Non financial transaction 10 to 20 rupees

VOLUME

In very short span of time 1year and 5 months 12,000 + account

holders have PCBL ATMs in total of 85,000 Account holders

CARD ACTIVATION
ATM Cards will be issued to customers in De-Activated form.
Card Activation will be performed at Call Centre after
verification of customer's Address, Phone number, Date of Birth,
NIC number & Mother's maiden name

MARKETING STRATEGY

First three months for all as a marketing strategy

From the date of launching it was free till Dec 31st, 2003 for
every account holder but there is no compulsion

SWITCHES

MNET 17 banks Owned by MCB

1 Link 13 banks Owned by ABN AMRO

On March 1st, 2005 first both switches will join hands,

resultantly both the switched participants banks cardholders can
operate/ transect on both switches

Both the switches charge from participant banks except their own
card holders

MNET- the new way to greater convenience and accessibility

MNET enables all the member banks to share their electronic

networks. This means customers of all member banks can use each
other's ATMs. ATM machines of MNET member banks accept cards
issued by Muslim Commercial Bank, Citibank, Standard Chartered,
HSBC, Bolan Bank, Credit Agricole, Bank of Punjab, Prime
Commercial Bank, Saudi Pak Bank Limited, Habib Bank AG Zurich,
Metropolitan Bank, Bank of Khyber and American Express. MNET
customers can use over 600,000 ATMs worldwide that carry the

logo and shop at over 5 million outlets that carry the

logo.
 PRIME COMMERCIAL BANK LIMITED

CONSUMER DURABLES

Smart financing is another product, which is offered by Prime

Bank. It includes all products of LG electronics and certain
other computer related goods. Loans are extended on very soft
conditions and through equal monthly installments repayment is
done by the customer.

SALIENT FEATURES

Amount:
Loans of minimum Rs. 10,000/- to a maximum of
Rs. 500,000/-
Tenor:
12, 18, 24 and 36 months
Pricing:
13% per annum
Processing Fee:
Nil
Insurance:
Not Required
Premature Payment Penalty:
Not applicable
Timely Payment Bonus:

Once all agreed upon installments on due dates and loan has been
repaid in full without any default whatsoever, 5% of the retail
price of goods financed will be paid back to the borrower through
a pay order. This timely payment bonus will also be made
available to those who repay the outstanding finance before the
expiry of the agreed upon tenor. In cases where the repayment in
full is being made before the expiry of agreed upon tenor, only
outstanding principal amount of finance will be recovered along
with up-to-date markup.

Repayment:

(For Prime Bank’s Employees)

The monthly installment is to be directly debited from the salary
account of the employee immediately after the salary has been
transferred to his/her account with the Bank.

(For External Customers)

In monthly installments duly supported by post dated cheques.

1st Installment:

(For Prime Bank’s Employees)

To be recovered in advance before disbursement to the dealer.

(For External Customers)

To be recovered in advance on approval of application.

Stamp Duty:
Government of Pakistan levies to be recovered preferably in cash
along with 1st installment.
(Rupees. 130/- only for the Prime Commercial Bank’s employees)
1- Letter of Hypothecation: Rupees 50/-
2- Letter of Lien & Set-Off: Rupees 30/-
3- Morabaha Finance Agreement: Rupees 50/-
4- Personal Guarantee: Rupees 50/-

TARGET CUSTOMERS

Smart Financing Scheme is focused on the following:

a- Salaried Individuals — Employees of reputable
concerns
b- Self-Employed individuals — Professionals
like doctors, engineers, architects, CA’s, Professors and
businessmen operating as sole proprietors, partners etc

PROCEDURE

Receiving of Applications: -
Applications will be received in either of the following manner
• From walk-in customers
• From LG’s representatives
• From our existing account holders

Checking of Applications:
Only those applications which are accompanied by the required
documents should be accepted for further processing and the
remaining should be returned to the applicants.

DOCUMENTS REQUIRED

(For Prime Bank’s Employees)

 Copy of NIC
  Recent Salary Slip
 Latest Provident Fund Balance Certificate
 Copy of Appointment Letter/Confirmation letter by the Bank
 Borrower’s Basic Fact Sheet.
 Undertaking authorizing Bank to debit his/her monthly loan
installment from his/her salary account at the Bank
 Undertaking authorizing the Bank to adjust his/her
outstanding dues towards loan liability incase of non-
payment of installments/death or resignation through the HR
& A Dept. from his/her settlement dues.

(For Salaried Individuals)

• Copy of NIC.
•Salary certificate by employer on employer’s letterhead giving
gross as well as net salary.
•Employer’s undertaking
•Latest Provident Fund Balance Certificate.
•Copy of Appointment Letter/Confirmation letter by the Bank.
•Borrower’s Basic Fact Sheet, copy of latest income tax return
for loans 100,000/- and above.

(For Self-employed Individuals)

•Copy of NIC.
•Last six months bank statement.
•Last paid utility bill.
•Borrower’s Basic Fact Sheet, copy of latest income tax return
for loans 100,000/- and above.

OTHER INFORMATION

The prices of products are subject to change without any prior

notice and the customer should confirm their availability at the
time of submission of application.

Disbursement to be made by crediting 95% of the loan amount to

retailers account with Prime Commercial Bank after ensuring
delivery of products to the customer request. The balance 5%
constitutes the commission repaid by retailers

PROCESSING & RECOMMENDATION:

Applications accepted will be divided in following three groups:

Group A For salaried individuals

Where only employer’s undertaking is the basis

Group B For self-employed individuals

Where security offered is lien on bank
 deposit, GOP securities/ COI

Group C Other securities like personal guarantees

acceptable to the bank.

The applications falling in Group A (salaried individuals) should

be processed by the officers by using Branch Selection Test
(BST). Once the application passes the BST, forward the same to
the Chief Manager for approval. The procedure is also given
hereunder for clarity:

• Take the total of retail Price(s) of that applicant has applied

for.
• Pick up the monthly installment for the preferred period (12,
18, 24 or 36 months mentioned in the application)
• Workout the percentage of the total monthly installment vis-à-
vis the net take home salary.
• All cases, where the total installment amount is equal to or
less than 35% of net lake home salary, will be considered
successful in Branch Selection Test.

For applications received from self—employed individuals, Chief

Manager will look at the security being offered which may be:

• Account with Prime Bank

• Account with another bank
• Government securities or COIs
• Personal Guarantee that may be acceptable to the bank (may
be from an officer or the bank or a good client etc.)

APPROVAL OF APPLICATIONS:

Applicants falling under Group A (salaried individuals)

Among other things, decision will be based upon the Branch

Selection Test. However, the approving authority (Chief Manager)
must ensure that the information given in the application form is
corroborative.

Applicants falling under Group B and C (self employed

individuals)

The Chief Manager will make a credit evaluation for approval

purposes by looking at other information available under the
income details column etc. The application will be approved or
declined accordingly.
After the approval / refusal, applications will be divided as
follows:

a. Successful applications for loans to be secured by

employer’s undertaking
b. Successful applications for loans to be secured by
lien/pledge on deposits,COIs, etc.
c. Successful applications for loans to be secured by
personal guarantees acceptable to the bank.
d. Unsuccessful applications

Prepare and dispatch refusal letters to unsuccessful applicants

However, the application forms along with office copy of refusal
letter should be retained in a separate file at branch premises.

Time Period for Approval/Refusal of Applications

The applications should be disposed of as either approved or

declined by the end of the next working day. For all approved
applications, applicants will be informed by phone calls
requesting them to visit the branch and complete the formalities
as detailed hereunder:

SECURITY/ DOCUMENTATION

The successful applicant’s will be requested for the following:

Applicants falling under Group A (where security is employer’s

undertaking)

1. Signing the Morabaha Finance Agreement along with schedules

thereto
2. Signing the Letter of Hypothecation
3. Signing the Local Purchase Order
4 Depositing the first installment (preferably in cash) and
applicable Government of Pakistan levies
5. Submitting the post—dated cheques for agreed upon
installments for entire tenor.

Applicants falling under Group B (where security is SSCs, DSCs,

COIs, bank deposit etc.)

1. Signing the Morabaha Finance Agreement along with schedules

thereto
2. Signing the Letter of Hypothecation
3. Signing the Letter of pledge, lien and authority for
securities (for DSCs, SSCs, COTs
4. Signing the Authority to collect proceeds
5. Signing the Letter of marking lien/pledge on DSCs, SSCs,
COIs.
6. Signing the Letter of Lien and Set Off (for bank deposits)
7. Depositing the first installment (preferably in cash) and
applicable GOP levies
8. Submitting the post- dated cheques for agreed upon
installments for entire tenor.
9. Signing the Local purchase Order

Applicants falling under Group C (where security is personal

guarantee)

1. Signing the Morabaha Finance Agreement along with schedules

thereto
2. Signing the Letter of Hypothecation
3. Submitting the Personal Guarantee (from a guarantor
acceptable to the bank).
4. Signing the Local Purchase Order
5. Depositing the first installment (preferably in cash) and
applicable GOP levies.
6. Submitting the post dated cheques for agreed upon
installments for entire tenor.

The post-dated cheques received from applicants should be entered

in safe-in-safe-out register and initialed by the Officer, Credit
Administration Department, and will remain In his custody. For
presentation of cheques on due dates, the same will be handed
over to the Operations Department one working day before the date
of the cheque.

In this regard, Credit Administrator will maintain a Smart

Financing Installment Calendar which should be referred to on a
daily basis.

All the documents mentioned above, along with the approved

application forms should be held in customer files to be
maintained separately for each customer.
BOOKING OF LOAN

Loan is to be booked when all the stipulated documents have been

signed by the customer and the proceeds of’ the cheque for the
first installment have been received and the customer has paid
the applicable stamp duty. Insist upon the customer to deposit
first installment in cash to expedite the process. The time of
opening the account is further clarified by the following
example.

Case A Documents signed on January 23, 2003 and first

installment received in CASH on January 23, 2003
 Open the DF account on January 23, 2003
 Take post-dated cheques for February 23, 2003,
March 23, 2003, April 23, 2003 and so on.

Case B Documents signed on January 23, 2003 and cheque for

first installment is received
 Obtain the cheque of first installment dated
January 24,2003 so that it may be lodged the same
day i.e. January 23, 2003 and the proceeds are
realized on January 24, 2003
 Upon realization of proceeds, open a DF account on
January 24,2003.
 Take post-dated cheques for February 24, 2003,
March 24, 2003, April 24, 2003 and so on.

FOLLOW UP OF CHEQUES RETURNED UNPAID:

If any cheques are returned for any reason i.e. lack of balance
in account etc. the Chief Manager should institute a procedure
whereby information of such cheques is provided to him on
priority basis enabling him to ensure vigorous follow up for
realization of such cheques.

ISSUANCE OF CUSTOMER ORDER:

In respect of all the successful applications where the

documentation formalities as mentioned above have been complete,
proceeds of first cheque have been realized and the customer has
paid the applicable Govt. levies (15% GST and 3.5% withholding
Tax) issue a “Customer Order” to retailers, hereinafter referred
to retailer will deliver the products within four working days
from the date of receiving the customer order.

CONFORMATION OF DELIVERY:

Retailers will deliver the goods as per the customer order within
four working days against customer’s acknowledgement and then
submit such acknowledgement along their bill to the bank
The procedure for making payments to retailer will follow shortly
PRIME COMMERCIAL BANK LIMITED
 CAR FINANCING

Preamble

At a time when retail or consumer banking is the mainstay of

every financial institution, it becomes imperative that products
tailor made to the requirements of the customers be formulated
and offered in the market. No financial offering, whether a
liability or an asset product, can survive in the long run, if it
does not take into account specific customer needs. The idea of
consumer financing in Pakistan has gained momentum as both the
consumers as well as commercial banks have responded favorably.

At present consumer financing being undertaken by the banks can

be divided into a few core categories comprising financing of
consumer durables, office equipment, automobiles, and housing.
Most of the financial institutions are more actively involved in
car financing as compared to other consumer finance products.

Declining interest rates and increased auto financing through

banks, leasing companies and Mudarabas have played a vital role
to boost up the auto sales like never before. In turn, it has
helped enhance the overall auto production because financing make
up over 45 per cent of total car sales today.

Banks enjoying an unprecedented liquidity find auto loan a highly

receptive market offering attractive returns in a comparative
short period of time. The availability of easy credit and the
falling interest rates have made financing a viable option for
many. The base of auto credit has witnessed an expansion never
dreamt possible before allowing the banks to find a lucrative
market to invest the excess liquidity.

In line with Prime Bank’s vision for a modernized banking and to

introduce innovative products in the market, the Bank has placed
greater emphasis on Consumer Banking with the launch of its first
consumer finance product of Car Financing Scheme, under the brand
name of “Prime Car”.

BRAND NAME
The brand name for Prime Bank Car Financing Scheme is “Prime
ear”.

FEATURES

Purpose
For borrowers personal, official use only

Eligible Vehicles
 All local assembled brand new vehicles
 All foreign assembled brand new vehicles
 All local used vehicles, not older than 1 year
 (Date to be checked from the sale invoice issued by
manufacturer)
 All foreign assembled used vehicles, not older than 5 years
 (Date to be checked from the original import papers of
vehicles)

Maximum Financing Limit

Rupees 1,500,000
Minimum Financing Limit
Rupees 100,000
Down payment
20% of the ex-factory price
Financing Period
1-5 years (12, 24, 36, 48, 60 monthly installments payable in
advance)

Processing Fee
Rupees 3,000
Processing fee will be charged as per the approved
schedule of charges, which is inclusive of verification
charges and stamps for charge documentation.

Verification charges to be received in advance with the

receipt of application from the customer and are non
refundable in case of refusal of loan facility

For the processing of used cars applications, any external

agency charges for evaluation of the used car shall be
charged at actual to the customer and will be non
refundable in case of refusal of loan request
Turn Around Time
Turn around time for each application from the time of
receipt till the time of its approval is 4 working days

Internal rate of return

12.5%

Insurance
Comprehensive insurance policy of vehicle in the name of
customer and Prime bank as sole beneficiary is a mandatory
requirement of Bank’s car financing scheme.

Insurance criteria for car finance is describe as under:

i. Insurance coverage must be obtained on the full price

of vehicle
(Full price is the sum of borrower’s equity and banks
financing amount)
ii. 1st year insurance premium to be received up-front
iii. For the remaining tenures, premium to be built into
the monthly installments at depreciated value of cars
as follows:
2nd year 90%
rd
3 year 85%
4th year 80%
5th year 75%

Insurance Rates
3.25% Shaheen
4.75% EFU

Premium Financing
Maximum of Rs. 50,000

The premium amount over and above the invoice value of vehicle to
be financed is fixed up to a maximum of Rs. 50,000/. The
percentage of premium amount will be deducted from the equity of
20% on price of vehicle, thereby reducing the down payment.

The premium to be financed is bifurcated for vehicle types as

follows:

1. For vehicles from 800cc to 1000cc horsepower Maximum of

Rs. 25,000 premium
2. For vehicles above 1000cc
Maximum of Rs. 50,000 premium
The above arrangement of premium financing is an optional
facility, for customer and should only be accepted at the request
of customer in the application form. However, in all
circumstances, the equity percentage should not fall below 15% of
price of vehicle.

As a matter of risk evaluation, it should be discouraged to offer

this option to walk-in customers or new customers having mediocre
net worth and creditworthiness with their banks. The existing
accountholders and employees of reputable organizations should be
preferred for this facility.

Loan Transfer Facility

Allowed

If the customer has availed a vehicle loan facility from any

other Bank or Leasing company during last 2 years at the then
prevalent rates ranging between 15 to 20%, and repaying the
rentals regularly, his loan/lease facility may be transferred to
our. Bank if he/she decides to terminate the facility from that
bank. Prime Bank will book the loan at the termination value
subject to proven track record of the customer with that bank.

The equity in the above transaction will be nil, as the customer

has repaid monthly installments in addition to its initial equity
deposited with that bank. The loan tenure should not exceed a
maximum of 4 years. Under the security documents, balance
transfer agreement will be signed by the customer in place of
Agreement for financing, on Mark-up Basis, along with the same
set of remaining legal documents.

Premature Termination
Allowed after at least 6 months of extending the loan facility
along with 5% of the outstanding balance as termination charges

Partial Prepayment
Allowed after at least 6 months of extending the loan facility,
as per the Bank’s policy subject to 5% charges of the pre-paid
amount as pre-payment fee

TARGET MARKET
The Bank’s target market for Car Financing Scheme~ is clearly
defined as:

O Salaried Individuals, Private and Government sectors

O Corporate Employees
O Professional Individuals such as Doctors, Teachers, Architects,
Engineers etc.
O Self Employed Individuals (Businessmen & Businesswomen)
O Business Entities (Proprietorship, Partnership, Private/Public
Limited Companies)

ELIGIBILITY CRITERIA

All salaried, self-employed businessmen and professional

individuals are eligible to apply for Prime Car if they are:

 Pakistani National
 Aged between 25 years to 60 years (60 years at the time of
maturity of loan)
 Earning a monthly take home income in excess of three times
of monthly installment.

Salaried/Professional Individuals:
 Employed for at least 1 year with a reputable organization
and presently a confirmed employee
 Take home monthly salary of minimum Rs. 20,000/.

Businessmen & Self-Employed

 Running owns business or a partner or director in the
business entity for at least 2 years.

Proprietorship/Partnership/Private/Public limited companies

 Business operational for a minimum period of 3 years with
profitable financial statements (Audited/Management
Accounts)

LIST OF DOCUMENTS REQUIRED

A complete list of documents required from each category of the

customers are given below

Common Documents
-
1. Two recent passport size photographs
2. Copy of National Identity Card
3. Bank Statement for last six months
4. Copies of Utility bills or mobile phone bills or credit card
bills for last 3 months
5. Copies of Income Tax Returns for last 2 years or Undertaking
by the customer.
6. Copy of the Driving License (optional)
Salaried Individuals

 Recent Salary Slip duly attested by the employer.

 Letter from employer, stating the date of joining of
employee, designation, gross salary, net salary & provident
fund balance.

For Business Class/ Self Employed/ Professional

 Evidence of income
 Bank Certificate stating applicant’s business duration and
creditworthiness.
 Copy of rental / purchase agreement of the business
premises.
 Copy of Professional Degree (if applicable)
 Copy of Membership of evidence in case the applicant is a
member of any professional organization. (if applicable)
 Copy of partnership deed if the customer is a partner in a
partnership firm.
 Copy of form A/29 if the customer is a director in a limited
company.

For Proprietors! Partnership/Private Limited Concerns

 Certificate of Incorporation
 Articles & Memorandum of Association
 Copy of Partnership Deed
 Audited! Management Accounts (if audited not available) for
last 2 years
 Copies of Tax Returns of business concern for last 2 years

Documents such as NIC, Utility Bills and Rental/purchase

agreements should be checked in original by the bank official.

VERIFICATION
Verification Charges Rs.
1,000

The charges of Rs. 1,000/ is fixed for all branches in Lahore,

Central and Northern regions, regardless of the actual charges
payable to the verification agency by PCBL.

The verification charges have to be received from customer once

he submits the signed application form along with pertinent
documents to Bank’s officer.
These charges are non-refundable in case of rejection of loan
request.

The verification agency would submit the report to the Bank

within a time period from one day to a maximum of two days, lest
there are irregularities during the verification process like the
unavailability of the customer, geographical distances of
customer’s official or residential premises or occurrence of any
unforeseen events or public holidays.

In order to offer prompt services to the customers, the Bank may

advise the verification agency to fax the verification reports to
the Bank as and when they are finalized and mail the original
ones later.

Documents to be provided to verification agency:

 Copy of completely filled and signed application form by the

customer
 Copy of N.J.C. of customer
 Original Bank statement
 Specimen signatures of the customer

Any of the below documents on case to case basis

 Salary slip/employer’s certificate (in case of salaried

individuals)
 Copy of the partnership deed
 Copy of the rental deed (if required)
 Copies of the tax returns
 Income evidence

Expiry of Verification Report:

The verification report’s authenticity will be relied upon for a

period of one month, and will be considered as expired
thereafter. This condition applies when a customer due to any
reasons whatsoever has failed to avail the loan facility approved
to him during one month from the official approval announced to
him. Henceforth, if the same customer applies for a different
vehicle after a month or wants to avail the already approved
finance facility, it is advised that a fresh verification report
to be sought. The decision to obtain a fresh verification or use
the previous one hinges on the credentials of the customer and
the officer’s comfort level with the customer or at the
discretion of the Chief Manager.

MATERIALS/ PROCESSING OF APPLICATIONS

The application form comprising of all the relevant information

to be filled in by the customer and loan agreement to be duly
signed by the client would be a mandatory tool. The other
stationery pertaining to the processing and execution of loan
applications are as follows:
1. Installment Calculation Sheet
2. Signature verification form
3. Request for Bank Statement verification
4. Borrower’s Basic Fact Sheet
5. Form for Balance Transfer Facility Details (in case of BTF
request)
6. Regret Letter
7. Approval Checklist
8. Offer/Acceptance Letter
9. Undertaking for Personal use of the Motor vehicle
10. Letter addressed to the previous Bank/leasing for issuance of
documents (for BTF loans)
11. Form for Insurance details to arrange insurance policy of
vehicle (to be obtained from branch offices of approved insurance
companies)
12. Purchase Order (Revised)
13. Delivery Order (Revised)
14. Disbursement Memo
15. Certificate in favour of the client authorizing him to drive
the vehicle.
16. Motor Registration Authority Letters for registration
purposes.(to be obtained from the local registration office)
17. Repayment Schedule

NON-ELIGIBLE (NO-GO AREAS)

 Lawyers
 People belonging to media (actors, actresses, celebrities,
singers)
 Film/ drama production houses
 Rent a car companies.
 Public transportation

PRIME COMMERCIAL BANK LIMITED

PURPOSE OF FINANCE

1. Purchase of a new/ old built house/ flat/ apartment.

2. Construction of new house.

3. Purchase of Plot only for Subsequent Construction

4. Renovation/ Expansion/ Restoration/ Improvement of existing

house/flat/apartment.

5. Takeover of House Finance obtained by the customer from

other financial institutions/ lenders (BTF).
TARGET CUSTOMERS

The Bank's target market for Home Finance Scheme is clearly

defined as:

 Salaried individuals

 Self-employed professionals such as Doctors, Engineers,

Architects, Chartered Accountants, Software and IT
Consultants, Teachers etc.

 Businesspersons (Sole Proprietors, Partners of partnership

firm, or Directors in private/public limited companies

ELIGIBILITY CRITERIA

All salaried individuals, self employed professionals and

businesspersons are eligible to apply for Prime Home Financing if
they fulfill the following criteria:

a. Pakistani residents aged 25-60 years

b. Age by maturity of loan 65 years

c. Minimum take home income of Rs. 15,000/-

d. Repayment installment should not exceed 55% of the take home

income (to be calculated @ the maximum rate of 12%)

e. (i) Salaried persons must be continuously employed in a

permanent position for at least last one year, with a total
employment history of minimum 5 years

(ii) For contractual employees to qualify, a total

employment history including permanent and contractual
services of minimum 10 years is required

f. (i) Businessmen/ Self-employed professionals must have a

minimum uninterrupted period of 5 years experience of
business/ professional self employment as the case may be

(ii) Current business/self-employment's satisfactory track

record should be ascertained/ verified through market repute
 and applicable documents (Financial or others)

ELIGIBILITY FOR PRIME BANK EMPLOYEES

In addition to the above, following are the policy guidelines for

availing "Prime Home" financing facility available to Prime Bank's
employees:

i) Applications from Prime Bank staff to avail 'Prime Home'

finance facility to be executed in line with the governing
Prudential Regulation & in accordance with the bank's "Prime
Home SOP and in doing so HR &A Division, H.O. should regularly
deduct the installments at source from the monthly salary of
the concerned employee, instead of obtaining post dated cheques
from him/her.

ii) The branch/RO/HO management may consider to assign the

concerned staffs Provident Fund and/or Gratuity, if need be, as
additional securities on case to case basis.

iii) Prime Home Financing may be extended to the bank's employees

qualifying for the same under the following conditions:

(a) Where the staff member is not availing any Home

Finance facility under
Employee Service Rules Compensation package.
or
(b) Where the staff member is availing Home Finance
facility under Employees
Service Rules compensation package provided there is
cushion available in
his/ her property already mortgaged with the bank.
or
(c) Where the staff member is availing Home Finance facility
under Employees
Service Rules compensation package and wants to avail
"Prime Home" for
any other additional property.

(d) Where the staff member is not entitled to avail the House
Loan facility as
per the Bank's House Loan policy;
iv) It would at discretion of bank's management to either
fully settle or allow the continuity of Prime Home loan of an
employee at his/her end of service, keeping in view the tenure of
the loan, its outstanding amount and as per bank's prevalent
policy.

NON-ELIGIBLE CUSTOMERS

Customers associated with the below professions may pose a high

risk. Therefore, before processing their applications due
diligence should be adopted.

1) Lawyers
2) People belonging to media (actors, actresses, celebrities,
singers)
3) Film/ drama production houses
4) Real Estate agents / Investors

FINANCE LIMITS

Prime Home finance, minimum & maximum limits are as follows:

Types of Home Finance Minimum Maximum

Finance Finance
Rs. 500,000 Rs.
Purchase of built house/flat/ 10,000,000
apartment
Construction of house Rs. 500,000 Rs.
10,000,000
Rs. 500,000 Rs.
Purchase of Plot only for 10,000,000
Subsequent Construction
Renovation/ Expansion Rs. 200,000 Rs. 7,500,000
Balance Transfer Facility Rs. 500,000 Rs. 7,500,000

For minimum finance limits, if less than prescribed, needs

approval from Regional Head/ Head of Consumer Banking.

TENURE

Borrower has the option to choose tenure from the minimum to the
maximum as appended below for the repayment of loan

Types of Home Finance Minimum Maximum

Tenure Tenure
Purchase 3 Yrs 20 Yrs

Construct 3 Yrs 20 Yrs

Purchase of Plot 3 Yrs 20 Yrs

only for Subsequent
Renovation/Expansion
Construction 3 Yrs 20 Yrs

Balance Transfer 3 Yrs 20 Yrs

Facility

EQUITY PARTICIPATION

The debt to equity ratio for each type of home finance is as

follows:

Types of Home Finance Debt / Equity

Ratio Bank :
Purchase 70 (Bank):30 (Borrower)
Borrower

Construct 80 (Bank):20 (Borrower)

Purchase of Plot only 50 (Bank):50 (Borrower)
for Subsequent 50 (Bank):50 Borrower)
Renovation/Expansion 50 (Bank):50 (Borrower)
Construction
(Loan amount to a maximum of 50% of
Assessed Value of house)

Balance Transfer Facility 70 (Bank):30 (Borrower)

Purchase: The equity, in case of Purchase shall be in the form

of customer's cash contribution i.e. a minimum of 30% of assessed
value of property.

Construct: The equity, in case of Construction, shall be the

plot itself which should value at least 20% of the * appraised
value of property, wherein the financing shall be extended up to
80% of the *appraised value of the property, however not
exceeding the maximum limit of Rs. 10.0 million.

* Appraised Value = Assessed Value of the land PLUS

estimated cost of construction.

Purchase of Plot only for Subsequent Construction:

Financing of plot is allowed only in case where it is followed by

subsequent financing for construction thereupon. A realistic
construction schedule has to be provided by the applicant before
allowing disbursement of the initial loan limit for the purchase
of plot.

The collective equity for both the purposes i.e. purchase of

plot & subsequent construction, on appraised value of property
shall be taken upfront from the customer before disbursement of
loan for purchase of plot

The total financing for both the plot and construction thereon
shall not exceed the maximum limit of Rs. 10.0 million, which is
the maximum limit permissible under SB Prudential Regulations.

Renovate: The equity, in case of Renovation/ Expansion shall be

the property itself being offered for renovation/ improvement
wherein financing shall be extended on 50% of the assessed value
of the property.

BTF: In case of a BTF request, the borrower's equity contribution

towards th loan has already been built to the extent of:

(a) Borrower's Equity (b) Repayments

Prime Bank's exposure of financing shall only be

limited up to:

(i) Maximum of 70% of the Assessed Value of the property

(ii) Premature Termination Value of the debt advised by
the previous Financial
Institution/Housing Company.
Or
Whichever of above (i) & (ii) is lower.

MARK-UP RATES

Markup rates on Home Finance have been devised to suit the

requirements of the borrower. Two options of markup rates are
as follows:

Fixed Markup Rates

Under the Fixed Rate basis the mark-up is paid at an agreed

rate on a set period of time. The Fixed Rate shall be as

follows:
No. of Mark-up
Years
For 1 year 7.0% p.a.

For 2 years 8.0% p.a.

For 3 years 9.0% p.a.

a) 30 days prior to the end of the fixed rate period, the

borrower shall have the
options either to accept fresh fixed offered rate for the
next term(s) or opt for the
 floating rate prevailing at that time.

b) If no response is received by the end of the period, the

fixed rate shall change to
one year fixed rate prevailing at that time.

c) In order to monitor the Due Date for revision of markup

rate for each borrower, a Due Date Diary shall be
maintained by the concerned staff.

Floating Markup Rate

Under floating markup system, the rate is to be pegged with

the discount rate of State Bank of Pakistan. Change in the
base rate shall have a bearing on the future installments

With floating mark-up rate, the markup is revised every 12

months and SBP discount rate is used as an index.

a) A spread of 1.0% to be maintained over the prevailing State

Bank of Pakistan
Discount Rate.

b) While the floor rate limit (minimum) will be maintained at

7% p.a., with no cap.

c) In order to monitor the Due Date for revision of markup rate

for each borrower, a
Due Date Diary shall be maintained by the concerned staff.

Special Rates for Balance Transfer Facility (BTF) Loans:

A rebate of 0.5% is to be offered upon the prevailing

adjustable/floating mark up rate as well as upon fixed rates for
all three tenures.

Fixed Mark-up Rates

No. of Mark-up for BTF loans

Years
For 1 6.5%
year
For 2 7.5%
years
For 3 8.5%
years

a) 30 days prior to the end of the fixed rate period, the borrower
shall have the
options either to accept fresh fixed offered rate for the next
term(s) or opt for the
floating rate prevailing at that time.

b) If no response is received by the end of the period, the fixed

rate shall change to
one year fixed rate prevailing at that time.

c) In order to monitor the Due Date for revision of markup rate for
each borrower, a
Due Date Diary shall be maintained by the concerned staff.

Floating Markup Rate

a) With floating mark-up rate, the markup is revised every 12

months and SBP
discount rate is used as an index.

b) While the floor rate limit will be maintained at 6.5% p.a. with no
cap.

c) In order to monitor the Due Dates for revision of markup rate for
each borrower, a
Due Date Diary shall be maintained by the concerned staff.

PRIME COMMERCIAL BANK LIMITED

 PERSONAL LOANS

Salient Features

Product Name Smart Cash

Loan Limit Minimum 10,000 rupees

Maximum 500,000 rupees

Mark up Rate 13%

Tenor Minimum 1 year

Maximum 5 years

Age Limit Minimum 20 years

Maximum 60 years

Eligible Income 10,000 rupees

Maximum Limit 35% DSR

Processing Fee none

Experience For Salaried 1 year

For Self-employed 1 year