CAR LOAN-Consolidated Guidelines 45-2021

RETAIL ASSETS DIVISION; HEAD OFFICE
PLOT NO.4, SECTOR-10, DWARKA, NEW DELHI-110075
TO ALL OFFICES 27-04-2021
In supersession of RAD Circular

No.39/2019 dated 27.08.2019;
79/2020 dated 17.08.2020;
102/2020 dated 21.10.2020;
115/2020 dated 26.11.2020;
25/2021 dated 15.03.2021;
41/2021 dated 01.04.2021
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RAD CIRCULAR NO: 45/2021
PNB CAR LOAN – CONSOLIDATED GUIDELINES
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Detailed consolidated guidelines regarding “PNB Car Loan” were issued vide
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RAD circular no. 79 dated 17.08.2020 and subsequent circulars issued from time to
time. Subsequently modifications were carried out to make the scheme competitive.
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2. In order to facilitate the field functionaries all these guidelines on “PNB Car
Loan” circulated from time to time have been consolidated and are placed as under:
a. PNB Car Loan- ANNEXURE-A.

b. Insta Vehicle Loan Scheme for existing Home Loan Borrower–ANNEXURE- B
c. PNB Combo Loan Scheme (Housing + Car Loan) – ANNEXURE – C.
3. All concerned are advised to go through the guidelines carefully and ensure
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meticulous compliance of the same. All Inspecting Officials are advised to note the
guidelines to ensure its compliance. In case of non-compliance of above mentioned
guidelines the issue of non-compliance may be flagged / reported to the competent
authority for taking further action in the matter.
(V.K. Gupta)
General Manager
Encl: As above
Index: PNB Car Loan
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RAD CIRCULAR No. 45/2021: PNB CAR LOAN: CONSOLIDATED GUIDELINES
“Confidential-strictly for internal circulation only”
Annexure-A
PNB CAR LOAN
1. Purpose:
To purchase:
i. New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles

(SUV).
ii. e-Vehicle.
iii. Old car/van/jeep/MUV/SUV, which are not older than three years and
unencumbered (i.e not financed by other Bank/Financial institutions
on the date of loan).
iv. Reimbursement of cost of New Car/Van/Jeep/Multi Utility Vehicle (MUV) or
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Sports Utility Vehicles (SUV) purchased by Individual/ Corporate out of
own funds. (Not more than 3 months old)
1.a Scheme code: TLPVL
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1.b Purpose of advance code: VEHFR- For purchase of four wheeler under
Retail.
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2. Eligibility:
2.1 For private use: Individuals.
2.1.1 Joint borrowers are also eligible, i.e., parent(s)/spouse/ Earning Children.
However, out of these only one joint borrower shall be permitted. Further, in
case of joint borrowers, an option be got exercised to specify the name of the
applicant borrower in whose name they want to get the vehicle registered.
2.1.2 Business concerns (corporate or non-corporate). Company /Firm to be in cash

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profit for the last two years.
2.1.3 For Reimbursement of cost of new cars:

a. Existing customer with satisfactory track record viz. all loan accounts
running regular with nil inspection irregularity.
b. Purchased the car out of own fund. For this purpose, documentary
evidence of payment made from own sources viz. statement of a/c or
any other document and independent verification of invoice from dealer
be made
c. Invoice date of the vehicle not more than 3 months old.
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2.2 Minimum income criteria for individuals/ proprietorship firms:
2.2.1 Minimum net monthly salary / pension/ income – Rs 25000/-.
(Income of Parent(s)/Spouse/ Earning Children can be taken into account for

determining loan amount/eligibility. In such cases, the parent(s)/ spouse/
earning children be made co-borrower). However, out of above only one co-
borrower shall be permitted and only his/her income shall be taken into
consideration for determining the loan amount.
2.2.2 AGM RAM/iRAM/ ZOCAC-I & above may relax the income criteria on case to
case basis considering the value of the account and the banking relations of
the prospective borrowers.
2.2.3 No minimum monthly income is required in cases where borrower agrees to

give 110% of liquid security in shape of Term Deposit.
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3. Loan amount:
3.1 For individuals/Proprietorship concerns:
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3.1.1 25 times of Gross Monthly Salary/ Pension/ Income with a ceiling of Rs 100
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lakh (for one or more vehicles).
3.1.2 In-Charge RAM/iRAM may relax the criteria with regard to number of times
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(i.e relaxation in number of times of Gross Monthly Salary/Pension/Income to
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arrive loan amount but within ceiling of 100 lakh) subject to monthly reporting
of such cases to Zonal Office.
3.1.3 ZOCAC-I & above may relax the criteria and sanction need based amount
within their vested loaning powers for cases falling under their powers as well
as those falling under the powers of lower authorities.
3.1.4 Income of Parent(s)/ Spouse/ Earning Children can be taken into account for
determining loan amount. In such cases, the parent(s)/ spouse / Earning
Children be made co-borrower. However, out of above only one co-borrower
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shall be permitted and only his/her income shall be taken into consideration
for determining the loan amount.
3.2 For Business Concerns (Corporate or Non-Corporate)
3.2.1 No ceiling of loan amount (for one or more vehicles). Subject to vested
loaning power at various level.
3.2.2 ZOCAC-I & above may sanction need based amount within their vested
loaning powers. (As per Loaning power chart circulated vide RBD (A) Circular
63/2020 dated 30.06.2020. IRMD L&A Circular 61/2021 dated 07.04.2021 and
subsequent circular issued from time to time).
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3.2.3 Car loans financed to business concerns for personal use of their executives,
i.e., other than for use in the business, shall be outside the purview of
corporate banking and may be sanctioned by officials under their vested
loaning powers, even in cases where the existing facilities have been
sanctioned by a higher authority.
4. Margin:
4.1 For new vehicle: 15% of on-road price inclusive of one time road tax &
insurance. ZOCAC-I & above at their discretion may reduce margin to 10% in
deserving cases.
4.2 Margin in case of tie up arrangement with car manufacturer/ dealer: 10% of
on-road price or nil on ex-showroom price, i.e., (100% financing of ex-
showroom price).
4.3 For old vehicles: 25% of the value of the vehicle.
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4.3.1 Valuation of old vehicles to be done at current invoice price of the new vehicle
less depreciation @ 15% p.a. on straight line method. Proportionate
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depreciation for any part of the year to be arrived at/ calculated on quarterly
basis.
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4.4 For Reimbursement of cost of new cars: 25% on On-Road Price
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5. Repayment period:
5.1 For new car/Van/Jeep/MUV/SUV: The loan amount together with interest is
to be repaid maximum in 84 equated monthly installments comprising of
principal and interest commencing from the succeeding month.
5.2 For old car/Van/Jeep/ MUV/SUV: The loan amount together with interest is
to be repaid maximum in 60 equated monthly installments.
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5.3 For new/old car/van/jeep/ MUV/SUV: In case of persons engaged in

agriculture & allied activities, sanctioning authority may fix repayment
schedule at half yearly/yearly intervals coinciding with the time of harvest.
However, the repayment period should not exceed 7 years (new vehicles) or 5
years (old vehicles).
5.4 ZOCAC-I & above empowered to relax repayment period by 12 months for
new cars.
5.5 Repayment to be ensured within 70 years for salaried persons with pension
and pensioners. For others repayment to be ensures within 65 years of age.
ZOCAC-I & above may further relax the above criteria by 5 years on case to
case basis.
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5.6 In case the loan is allowed to joint borrowers, it be ensured that at least one of
the joint borrower(s) is able to repay the loan alongwith interest upto the
maximum prescribed age, i.e., within 70 years for salaried persons with
pension/pensioners and 65 years of age for others. ZOCAC-I & above
may further relax the above criteria by 5 years on case to case basis.
5.7 Permissible deduction
(i) Repayment should be fixed on a realistic basis, which should not exceed the
prescribed limit of Gross Monthly Salary/Income (GMS/I) of the borrower(s)
(Individual/Business Concern). For this purpose, all deductions including the
proposed Car Loan installment should not exceed the prescribed ceiling as
under:
GMS/I Max. Permissible Deduction of GMS/I

Up to Rs.50000 50%
>Rs.50000 60%
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AGM RAM/iRAM/ZOCAC-I & above may permit deduction of GMS/ I
maximum upto 60% and 70% in the above bracket, respectively.
5.8 Regularity of income:
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i. For all class of borrower(s): The regularity of income of the borrower(s) over
the entire span of loan should be clearly established before sanction of loan.
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Latest salary slip, ITR (for the last two years) etc. be taken & perused.
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(a) For salaried class: Latest salary slip, Form16/ITR for the last 2 years be
taken, perused and placed on record. Assessment of Loan/ Repaying
capacity be arrived at on the basis of latest salary slip and other regular
income, i.e dividends, interests, rent etc. as declared in salary
certificate, from 16 and/ or income tax returns. Where 2 years ITRs/Form
16 is not available on account of lesser service period, the sanctioning
authority may consider sanction of loan provided last 12 months salary is
verified either from salary slips/form 16 or Statement of Account. Salary
certificates must be independently verified from HR Deptts. of the
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Co./concern).
Note: Form16/ITR is not to be insisted upon, in case the proposed
borrower is a confirmed/permanent employees of Central Govt./ State
Govt./ PSUs/ MNCs/ Listed Companies at BSE or NSE (whose Shares are
actively traded and quoted above par), maintain his salary account with
us, drawing salary of an amount which does not categorize under
taxable income i.e presently, upto the threshold limit of Rs. 2.50 lakhs
per annum and having his/ her salary account with our bank for the last
two years. Further, Sanctioning Authority may consider sanction of loan
provided last 12 months salary is verified from latest salary slips and
Statement of Account in case of service is less than 2 years.
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In such cases, an undertaking from the Employer to be obtained that
salary account will not be transferred to other bank during the currency
of the loan.
(b) For other than salaried class: While ITRs and Audited Balance Sheets
(Wherever applicable) for the last 2 years of business/activity shall be taken
and perused to ascertain continuity of income, Assessment of loan/Repaying
capacity be arrived at on the basis of average income as reported in the last
two ITR.
However, deviation regarding availability of ITRs/ABSs may be permitted by

AGM RAM/iRAM/ZOCAC-I & above subject to taking of minimum 1 year
latest ITRs/ ABSs.
Note: It should be ensured that borrower have not filed multiple ITRs in
single financial year.
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(c) For business concerns (Corporate/ Non-corporates): Loan amount to be
arrived considering average cash profit (i.e Net Profit after Tax+
Depreciation) for the last two years as per the last two ITR and Balance
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Sheet (audited wherever applicable) to serve the proposed installments.
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Two years ITRs and Balance Sheet to be obtained.
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ii. Further, specific care be exercised in respect of IT returns showing sudden
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spurt in the salary/ income levels. Recommending/ sanctioning authority to

fully satisfy himself/ herself before considering acceptance of such income/
salary. Justification/ basis of the same be provided in the recommendation/
sanction note.
iii. In case of persons engaged in allied agricultural activities and

agriculturists, net income can be arrived at by sanctioning authority based
on their land holding, cropping pattern, yield, etc. (PSFID cir. no. 135 dated
30.12.2017, 67/2018 dated 03.12.2018, 17/2019 dated 27.05.2019 and as
amended from time to time).
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iv Illustrative charts indicating Equated Monthly Installment to cover repayment

of principal and interest on ‘Upfront / advance basis’ and ‘Arrear basis’ have
been provided with RBD (A) circular no. 12 dated 25.02.2016.
It is advised that the prospective borrower be informed and provided the

option to choose repayment plan on ‘advance’ or ‘arrear’ basis and option
regarding EMI cheques/ECS/SI be obtained accordingly. Further, where
option of NACH/ECS is applicable the same may only be got exercised.
v. No fresh/ additional Post Dated Cheques (PDC)/ Equated Monthly Installment

(EMI) cheques (either in old format or new CTS shall be accepted in locations
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where the facility of ECS / RECS / NACH (Debit) is available. The existing
PDCs/ EMI cheques in such locations may be converted into ECS / RECS /
NACH (Debit) by obtaining fresh ECS / RECS / NACH (Debit) mandates.
vi Cheques complying with CTS-2010 standard formats shall only be obtained in

Locations, where the facility of ECS / RECS / NACH (Debit) is not available.
Note: Detailed guidelines regarding National Automated Clearing (NACH)

have been circulated vide DBD Circular No. 13/2016 dated 11.02.2016 and
DBD Circular No. 44/2016 dated 30.07.2016 and subsequent circular issued
from time to time.
6. Rate of Interest:
ROI for wards/parents of
existing/Ex-Staff & Pre
Rate of Interest approved Insta-Vehicle
Scheme/ Borrower Type
Loan Scheme for Home
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Loan borrowers.
New Car Old Car New Car Old Car
Women
RLLR+ RLLR+ RLLR+
PNB Irrespective of RLLR+1.50%
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0.75% 1.75% 0.50%
PRIDE* CICs Score
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Corporates
CIC Score 750 & RLLR+ RLLR+ RLLR+ RLLR+1.50%
above 0.75% 1.75% 0.50%
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Others CIC Score 700 RLLR+ RLLR+ RLLR+ RLLR+1.65%

Individual and up to 749 0.90% 1.90% 0.65%
CIC Score less RLLR+ RLLR+ RLLR+
RLLR+ 1.75%
than 700 1.00% 2.00% 0.75%
Loan to Defence/ Para Military
New Car – RLLR + 0.50%
Under Rakshak Plus
Old Car – RLLR + 1.50%
(Irrespective of CICs score)
Under Fixed Rate option for MCLR+ MCLR+
Not available
All# (Including under PNB Pride) 0.95% 1.95%
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*PNB PRIDE covers the Central/ State Government Employees/ Defence personnel/ Para military
Forces/ Pensioners of Central & State Government & Employees of PSUs.
# Fixed rate option, Loans are permitted under MCLR option only.
Note: The credit information report shall be extracted and appraised as per bank
guidelines. (Refer IRMD L&A Circular 15/2021 dated 15.01.2021 – Guidelines on
Credit Information Reports (CIRs) of the borrowers provided by the Credit
Information Companies (CICs)
Refer MISD Circular 02/2021 dated 01.01.2021 for the Process flow for drawing
of Credit Information Report (CIRs) from Bureau One application
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a. As per extant guidelines, for loan amount of Rs 10 lakh & above, score from
two CICs are to be obtained. In such cases, the higher Score of the two CICs
scores will be considered for arriving at the applicable rate of interest.
b. In case where CIC score of applicant is having values (-1) or (0) i.e. no credit
history, then rate applicable in bracket “CICs Score 700 and up to 749” will be
considered.
c. If more than one applicants are there, average of CIC scores of the applicants
(whose incomes are considered for eligibility) to be considered for pricing. In
such cases, CIC score of applicant/s having values (-1) or (0) i.e. no credit
history should be excluded for average calculation.
d. In case of joint applicants, individual CIC score of all the applicants (whose
scores are considered for average calculation) should be minimum 700 for
getting better rate of Interest. If any of the joint applicant is having CIC score
less than 700, then rate applicable in bracket “CICs Score of less than 700 will
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be considered.
e. In case of old car, the Rate of Interest is 1% over and above the card rate.
f.
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Concession of 0.10% in case of e-vehicle under all slabs. (to be handled
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through preferential in CBS).
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g. Concession of 0.25% in rate of interest for the wards/ parents of existing/ Ex-
staff.
h. Concession of 0.10% in the Rate of interest in the bracket “CIC Score 700
and upto 749” to employees of corporates client (Company) dealing with
our bank. Applicable for purchase of New as well as Old Car.
The rate of interest under fixed rate option shall be reviewed and re-set by
the Bank after each block period of 3 years and revised rate of interest shall
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be applied from i) 1st April in respect of the loan disbursed during 1st
October to 31st March and from ii) 1st October in respect of the loan
disbursed during 1st April to 30th September after expiry of each block period
of 3 years.
For example, loan disbursed during 01.10.19 to 31.03.20 shall be reset on

01.04.20 and loan disbursed during 01.04.20 to 30.09.20 shall be due for
resetting on 01.10.20 and the same method will continue for loans sanctioned
thereafter.
6.1 Incumbents may allow existing car loan borrowers to change the option
from fixed to floating rate of interest and vice-a-versa. Such change of option
shall not, however, be permitted for a minimum period of one year from the
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date of 1st disbursement, where after any change will be at the discretion of
the sanctioning authority & change of option shall, however, be subject to
payment of 1% flat fee on the total amount outstanding in the account.
6.2 It is to ensure that under fixed rate option, ‘Account Pegged’ field in CBS to
be set as ‘Y’ and the date until which the account is pegged is to be entered
in the field ‘Pegging Review Date’. The significance of this field is that during
the period for which the rate of interest in the account is pegged, any changes
in the interest code will not impact rate of interest applicable to the account.
6.3 To build up the relationship with good corporate client of the bank, it
has been decided to offer certain relaxations in processing charges & Rate of
Interest to Employees of Corporate client (Company) dealing with our bank, as
under:
Eligible Customers Relaxations

Employees of Corporate client a. 50% concession in Upfront fee &
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(Company) dealing with our bank documentation charges.
having: (Applicable Upfront fee &
documentation charges 0.25% of
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a) Total relationship value of Rs. 5.00cr and Loan amount (Minimum – Rs. 1000/-
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above. Maximum Rs. 1500/-)
b) Dealing with the bank from the last 3
Years. b. 0.10% concession in the Rate of
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c) Conduct of the account is satisfactory. interest in the bracket “CIC Score

700 and upto 749”
Eligible Employees: CIC Score Rate of interest
CIC Score 750 & RLLR +0.75%
a) Confirmed employees of the company. above (No change)
b) Working with the company for the last 2 CIC Score 700 and RLLR +0.80%
upto 749
year.
c) Employees have the CIC score of 700
and above. Note: 1% extra in case of purchase of
old vehicle.
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7. Pre-payment charges (Prepayment of the total outstanding):
7.1 As per IRMD, HO (L&A) circular no. 89 dated 21.11.2016; it has been advised
that on all term loans sanctioned to individual borrowers on floating rates, no
pre-payment charges be levied w.e.f. 07.05.2014. In case of term loans
sanctioned at fixed rate with reset clause, no pre-payment charges will be
applicable from the date of conversion of such loans in to floating rate loans, if
the borrower exercises his option for floating rate of interest, at the time of
reset.
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7.2 Prepayment charges @2% on the outstanding pre-paid are to be levied
except in cases as per Para 7.1 above. However, no such charges to be
recovered in the following cases:
7.2.1 Where the loans are prepaid by the borrowers from their own sources.
7.2.2 Where the borrower shift to other bank within 30 days from the date of
issuance of circular for upward revision in the rate of interest to be charged in
his account or change in other terms of sanction.
7.2.3 If closure of loan is on the instance of the Bank on account of size of

irregularity, possibility of default in future or any other technical or other
specific reasons, pre-payment penalty would not be applicable in such
accounts.
7.3 Branches while conveying the sanction to the borrower (s) in respect of term
loan (s) sanctioned, should incorporate about the levy of pre payment charges
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in the sanction letter.
8. Insurance: To obtain comprehensive insurance policy (covering third party
insurance also) with agreed Bank clause and policy to remain deposited with
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the Bank. Bank to ensure that every Car/vehicle is insured at all times
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covered by third party insurance during the pendency of loan because in case
the vehicle is not insured, in the eventualities like theft, accident, etc., the
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bank will not be able to get the insurance claim and the loan will remain
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unsecured.
9. Security: Vehicle purchased to be hypothecated to the bank. Name of the

Bank/branch must be mentioned on the JRC (Joint Registration Certificate)
and a BM verified copy of the same to be kept on record.
9.1 Further, some State Transport Authorities have started issuing Registration
Certificates of the Cars/vehicles in the shape of Smart Cards, which may or
may not contain the hypothecation clause, where the Car/vehicle is financed
by the Banks / FIs. Wherever such hypothecation clause is not
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marked/entered in the JRC / Smart Card issued by the Transport Authorities,

it be ensured that a certificate issued by respective State Transport Authority
incorporating Car/vehicle particulars including hypothecation clause alongwith
receipt of fee deposited, if any, be obtained by the branch and held on
record.
9.2. Further, in terms of IRMD (L&A) Circular No. 121/ 2019 dated 16.10.2019,
IBA has clarified that any vehicle registered with the VAHAN Registry shall be
deemed to be registered with the Central Registry for the purpose of
SARFAESI Act, 2002. Hence, Vehicle Details extracted from VAHAN Portal
must be treated equivalent to the copy of JRC provided by the borrower.
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9.3 In order to ensure proper joint registration of vehicles financed by banks,
branches are advised to extract JRCs from the VAHAN portal
(https://vahan.nic.in) for all vehicle and keep the same on record for
compliance guidelines.
9.4 Further, in cases where details of JRC cannot be extracted from “VAHAN
POTRAL”, the branch officials are advised to obtain the copy of JRC from
borrowers and held the same on record.
9.5 To have a proper MIS and follow up where JRC is not obtained a field has
been created by HO. ITD in the CBS to capture the details of the JRC.
9.6 The menu option and the screen shots to capture the details of JRC are
annexed at Appendix – 1.
10. Guarantee/ Collateral Security:
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10.1 Guarantee acceptable to the Bank in case of Gross Monthly salary/
pension/income is less than Rs. 50000/-
10.2 No guarantee required for permanent employees of Central Govt./ State
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Govt./ PSBs/MNCs/ Listed companies of BSE or NSE whose shares are
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actively traded and quoted above par irrespective of income.
10.3 Incumbents of Branches headed by Scale IV & RAM/iRAM Head and above
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may waive the guarantee / collateral security on merits of each case.
11. Loaning powers: As per the vested loaning power circulated by IRMD &
RBD from time to time.
Loan for old car/van/jeep/MUV/SUV to be allowed by In-charges of

Branches/RAM/iRAM (Minimum Scale IV) / ZOCAC-I and above.
The cases where PNB Score is above 40 & up to 50 can be considered by

next higher authority* for sanction with proper justification. References be
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made to circulars issued on the subject PNB SCORE from time to time. (Refer
RBD (A) Circular 31/2020 dated 31.03.2020 for detailed guidelines on PNB
Score).
*Next Higher authority in case of:-
a) Branch Sanction – AGM RAM/iRAM

b) RAM/iRAM Sanction – ZOCAC-I and above.
Note: Vehicle Loans sanctioned to Business concerns, i.e., Companies, Partnership

firms, etc., shall continue to be covered as per Credit Risk Rating Model applicable
to ‘Term Loan’ to such concerns. (Refer RBD (A) circular 31/2020 dated
31.03.2020).
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11.1 Loaning Power for Reimbursement of cost of new cars:
Branch - Car purchased having invoice date up to 1 Month (Within vested

power).
AGM RAM/iRAM/ ZOCAC-I & above - Car purchased having invoice date up
to 3 Months (Within vested power)
12. Disbursement to be done as under:
a. Through Demand Draft. (DD): Disbursement through DD to be permitted by

next higher authority. i.e
RAM/iRAM in case Loan sanctioned by Branch

&
ZOCAC-I in case Loan sanctioned by RAM/iRAM/MCC).
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Note: In case of disbursement through draft, It should be ensured by the loan
disbursing branch, that draft representing cost of the vehicle is delivered personally
by the bank official to authorized dealer/seller of the vehicle.
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b. Transfer to account maintained with Punjab National Bank.
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c. Transfer to account maintained with other bank through NEFT/ RTGS
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12.1 After making the disbursement receipt/bill in joint names is obtained. While
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making delivery of the proceeds of the vehicle, an undertaking from the Dealer/
Authorized agent be obtained and held on record that in case of cancellation of
booking of vehicle for whatsoever reason, the proceeds shall be refunded directly to
the Bank and in any case should not be refunded/ handed over to the borrower.
12.2 The standard operating procedure (SOP) while making disbursement in car
loan account is placed at Annexure – I.
12.3 Letter be obtained from the dealer for preferred mode of payment as per form
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No. PNB 2020 (Enclosed).
12.4 In order to ensure that the disbursement of vehicle loans is made

through registered accounts of dealers available in CBS a menu “CARDEALM”
has been customized to capture bank account details of Car Dealers in CBS. The
detailed process flow for capturing the dealers detail/ bank account details in CBS
data base is placed at Appendix–II Guidelines of the same was issued vide RAD
Circular 40/2021 dated 01.04.2021.
13. Security inspection:
13.1 Where the loan account is running regular the requirement of periodical
Inspection, including obtaining of PNB 551, may be done away with.
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13.2 For irregular accounts and accounts under NPA category, the inspection be
done on quarterly or at such shorter intervals as the situation demands and
PNB 551 to be obtained.
13.3 However, the requirement of first verification of vehicle will continue to be

mandatory.
13.4 In case vehicle is not produced for inspection, immediate action against the
borrower be initiated to safeguard Bank’s interest.
14. Under tie-up arrangement with PSUs, corporates, institutions or in case

of bulk business:
14.1 ZOCAC-I & above may relax terms and conditions relating to “Margin” and
“Repayment period” under tie-up arrangement with PSUs, corporates/
institutions or in case of bulk business with PSUs, corporates/ institutions of
repute where repayments are assured as under:
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14.2 Margin: ZOCAC-I & above may reduce Margin upto 10% of on-road price.
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14.3 Repayment Period: ZOCAC-I & above may relax repayment period further
by 12 months from the existing 84 months in case of new Cars.
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14.4 Guarantee: Guarantee of spouse, if employed/earning, OR third party
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guarantee acceptable to bank.
No guarantee required:
If take home pay is more than Rs.30,000/ p.m.
OR
If there is no default in repayment of EMI in home/personal loan for the past
three months, if any, availed from PNB.
(Bulk business would imply a minimum of 5 car borrowers from the same
organization at one time (within a calendar quarter).
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14.5 Assured repayments would imply obtention of:
14.5.1 Irrevocable Letter of Authority from borrower authorizing the employer to remit
salary/installment and other amount payable to the Bank cum letter of
acknowledgement from employer–Form -PNB 1134
Note: In case of salaried class borrower: Requirement of PNB 1134 may be

waived in case the prospective borrower is a permanent employees of Central
Govt./ State Govt./ PSUs/ MNCs/ Listed Companies at BSE or NSE (whose
Shares are actively traded and quoted above par).
Page 13 of 77
14.5.2 A letter of undertaking from the employer acknowledging to comply with
instructions as per the irrevocable letter of authority of the borrower employee.
15. Documentation:
The following documents to be obtained:

i. Application– cum – appraisal / sanction Form – PNB 1055A
ii. Proforma Invoice
iii. Letter of Sanction - PNB 2055
iv. Letter of Hypothecation – PNB 910
v. Irrevocable letter of authority from borrower authorizing the employer to
remit salary/installment and other amount payable to the Bank cum
letter of acknowledgement from employer–Form -PNB 1134
(Wherever applicable)*
vi. Guarantee Deed (wherever applicable) Form – PNB 58
vii. Fraud prevention checklist – PNB 2018
viii. Pre sanction visit report – PNB 2019
:58
ix. Letter from branch to dealer/ supplier for preferred mode of payment
and account details – PNB 2020
x. Letter from branch to dealer/ supplier for delivery of vehicle and
acknowledgement of receipt of payment – PNB 2021
xi.
12
At location where NACH/ECS/RECS (Debit) is not available -
/20 28
Recovery/ Repayment of EMIs in Car loan accounts be considered
through PDCs /Standing Instruction. Mandate of the customers for
21
debiting their accounts through Advance cheques (CTS-2010) signed
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by the borrower repaying monthly instalments under the cover of letter

be obtained. Such Post dated advance cheques should be obtained of
that account whose statement of account is obtained and not of our
Bank where a shadow account is opened just for getting cheque book.
OR
xii. At location where NACH/ECS/RECS (Debit) is available - No fresh/
additional Post Dated Cheques (PDC)/ Equated Monthly Installment
(EMI) cheques (either in old format or new CTS shall be accepted in
locations where the facility of ECS/ RECS/ NACH (Debit) is available.
26
The existing PDCs/ EMI cheques in such locations may be converted

into ECS/ RECS/ NACH (Debit) by obtaining fresh ECS/ RECS/ NACH
(Debit) mandates.
In case of financing to companies, document evidencing registration of
charge be procured and held on record.
Note: Detailed guidelines regarding National Automated Clearing

(NACH) have been circulated vide DBD Circular No. 13/2016 dated
11.02.2016 and DBD circular no. 44/2016 dated 30.07.2016, 71/2016
dated 03.11.2016, 21/2017 dated 28.03.2017 and subsequent circular
issued from time to time.
xiii. Description of the vehicle to be hypothecated (PNB 420).
Page 14 of 77
xiv. An undertaking that the vehicle would be driven by a valid driving
license holder to be obtained.
*Note: In case of salaried class borrower: Requirement of PNB 1134

may be waived in case the prospective borrower is a permanent
employees of Central Govt./ State Govt./ PSUs/ MNCs/ Listed Companies
at BSE or NSE (whose Shares are actively traded and quoted above par).
16. Upfront fee & documentation charges: 0.25% of Loan amount (Minimum –
Rs. 1000/- Maximum Rs. 1500/-) Excluding GST.
16.1 Inspection Charges:
a. Where the loan account is running regular the requirement of periodical

inspection, including obtention of PNB 551 has been done away with – Nil
b. For irregular accounts and accounts under NPA category, the inspection
to be done on at least quarterly or at such shorter intervals as the situation
:58
demands and PNB 551 to be obtained on half yearly basis – Rs. 100/- +
service tax.
12
16.2 All Branches are advised to credit the fee-based income collected by way of
Processing fees/ Upfront fees and Documentation charges on account of
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Retail Advances to the correct revenue sub head “<sol id > 2032504
21
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17. Service charges to be paid to car dealers and their sales executives:
Eligibility per dealer per Rates

Financial Year (% of loan
amount)
Up to 10 vehicles or loan
1.50%
amount upto Rs. 40 lakh
11 to 40 vehicles or loan
Dealer's service charges at all amount above Rs 40.00 1.70%
26
Centers irrespective of location. lakh & upto Rs 1.25 crore

Above 40 vehicles or
loan amount above Rs. 1.95%
1.25 Cr.
Eligibility per Rates

executive per Financial (% of loan
Dealer’s executive service Year amount)
charges Up to 10 vehicles or loan
0.25%
amount upto Rs. 40 lakh
11 to 40 vehicles or 0.30%
Page 15 of 77
loan amount above Rs
40.00 lakh & upto Rs
1.25 crore
Above 40 vehicles or
loan amount above Rs. 0.35%
1.25 Cr.
Note: The payment of service charges is inclusive of GST.

17.1 Circle Heads are vested with powers to alter the payout ratio amongst the Car
Dealer and Sales Executive keeping in view the business mobilized. It should
be ensured that the aggregate payout should not exceed the overall maximum
payout approved by the bank.
17.2 The procedure of payment of business facilitator charges to be paid to the Car
Dealers/ Car Dealer’s Executive in lieu of Car loan business referred by Car
Manufacturers/ Car Dealers under tie-up arrangement is as under.
:58
i. The Circle Office to provide a 12 digit unique code to each car dealer in
their jurisdiction with whom there is a Tie-up Arrangement (whether by
Head Office on Pan India Basis or by Circle Office on local basis). The
12
code will be linked to the Car Manufacturer, Circle Office’s Dist no. and
/20 28
sequence number. First 4 digits will represent the Car Manufacturer e.g.
MARU – Maruti, HYUN – Hyundai etc., the next 4 digits will represent the
Circle Office i.e. 6529 – South Delhi, 7488 – Central Delhi etc. and last 4
21
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digits will be for the dealer sr. no. (separate sr. no. for different
manufacturers)
ii. The Dealer will provide leads to the branch for consideration.
iii. The branch will process the application on merits and sanction the loan.
On disbursement, the branch will enter the Dealer Code under “Free
Text 10” in MIS Details of the loan account.
iv. The dealer will submit the claim to respective Circle Office with the
26
details of leads generated and converted to business alongwith the name

of Sales Executive on fortnightly/monthly basis in a specified format.
(Claim Format enclosed)
v. The Circle Office will validate the claim from CBS as well as confirm from
the branch regarding the transactions.
vi. The Circle Office will make payment from Suspense and claim
reimbursement from the concerned branch.
vii. The branch will debit revenue code “1142224 – other expenses Service
charges payable to Car Dealers under Tie-up”.
Page 16 of 77
viii. In case of Multi Location Scenarios i.e if a Car Dealer has showroom/
Dealership falling under the jurisdiction of different Circles, claims will be
submitted with the respective Circles separately related to the branches.
ix. It is advised that the payout should be made through NEFT/ RTGS
directly to the beneficiary account instead of crossed bank draft/
crossed cheque as advised earlier. Under no circumstances it is to
be made in cash.
Note: In cases where a single car dealer (Having single dealer code) has its
branches (showrooms) in a city, catering to multiple circles but within Zone:
a. Payment of the car dealer is to be made by the Zonal office (as against
Circle office in normal cases) on the basis of the claim submitted by the
dealer on monthly basis.(Consolidated performance)
b. In such cases, Zonal Manager are vested with powers to alter the payout
ratio amongst the Car Dealer and Sales Executive keeping in view the
:58
business mobilized. It should be ensured that the aggregate payout should
not exceed the overall maximum payout approved by the bank.
c. If the dealer has a separate dealer code for different showrooms, the
12
dealer to be considered as separate dealer and accordingly payment of
/20 28
service charges to be made. In such cases OEM’s authorization letter be
verified.
21
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x. It be ensured to make the entry in the expenditure head strictly through

EXTM menu option as per narration as under:
Step 1: user to select Category Code: “Commission” and Sub Category Code:
“Payout Pack” in EXTM menu option.
Step 2: Transaction remarks field to be entered in the following format:
XXXXXXXXXXXXXXXX:YYYY (Sixteen digit loan account number, followed
by a colon and followed by first four alphabets of Car Manufacturer Name.
CBS Code for Car Manufacturer Car Manufacturer Name
MARU Maruti
26
HYUN Hyundai
MAHI Mahindra
TOYO Toyota
TATA Tata
HOND Honda
FORD Ford
RENA Renault
NISS Nissan
VOLK Volkswagen
KIAM KIA Motors
MGMI MG Motor
OTHE For other Car Manufacturers
Page 17 of 77
17.3 The above service charges shall, under no circumstances, be paid to car
dealers and their sales executives in cases of walk in business not referred
by Car dealers and loan to staff members whether sanctioned under staff
scheme or public scheme. The payout will be based on leads generated
for the circle as a whole in branches/RAM/iRAM in that Circle and not on
individual branch basis.
17.4 Our bank has entered into tie-up arrangements with a number of reputed car
manufacturers. The list of car manufacturers with the date of validity of tie-up
arrangement is as under:
TIE UP WITH CAR MANUFACTURERS AT ALL INDIA LEVEL

Sr. No. Car Manufacturer Tie-up valid upto
1 Maruti Suzuki India Ltd.(MSIL) 07.02.2022
2 Tata Motors Ltd 31.03.2024
:58
3 Mahindra & Mahindra Ltd. (M&MIL) 31.03.2024
4 Honda Cars India Ltd. (HCIL) 01.03.2026
5
12
Force Motors Ltd.(FML) 31.03.2024
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6 Toyota Kirloskar Motor Pvt. Ltd (TKM) 24.09.2025
21
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7 Hyundai Motor India Limited 04.11.2022

8 MG Motor India Private Limited 30.01.2024
Further, Circle Heads have been vested with powers to enter into tie-up
with local car dealers.
17.5 While opening a loan account under TLPVL and TLSVL scheme codes,
Branch Official is required to capture the first four alphabets of the Car
26
Manufacturer name:
Step 1: User to press “Search Button” at “Free Text 9” field on “MIS Codes”
page, a list of codes of Car Manufacturers will be displayed, user to select the
applicable code.
(In CLAPS user to select the appropriate code from “Free Text 9” drop down
list).
18. General:
18.1 Finance will be provided for purchase of vehicle of indigenous/foreign makes.
Page 18 of 77
18.2 The intending borrower will be required to deposit the difference of the cost of
the vehicle and amount of loan and bank will pay the entire price of the
vehicle to the seller direct on behalf of the borrower. Advance, if any, paid for
booking of the vehicle shall be taken as a part of margin.
18.3 Driving license of the borrower may not be insisted upon. An undertaking that
the vehicle would be driven by a valid driving license holder to be obtained.
18.4. (a) For Prospective Borrowers dealing with us - Statement of account of

prospective borrowers having their account with our Bank, be obtained to
establish satisfactory transactional record.
18.4. (b) For Prospective Borrowers dealing with other Banks/FIs- The track
record of at least one year of prospective borrower/ co-borrower, dealing
with other banks/ FIs and willing to avail loan from our Bank must be
thoroughly verified before making the advance. Further, the genuineness
of documents including Bank A/c statements etc. to be obtained for this
:58
purpose shall also be ensured invariably, besides conducting other
checks such as CIC database check- up, KYC norms etc and fulfilling
other requirements of the scheme.
12
In case of salaried employees, statement of account should be of that
/20 28
account, in which their salary is being credited. In other cases, it should be of
an account whose declaration has been made in the Income Tax Returns
21
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(wherever applicable). This is to facilitate ascertaining general conduct of the

account including other borrowings.
18.4. (c) In case of the customers not having their account with any other Bank/ FI
or for any deviation on the above account, the Branch Incharge in the
rank of SMG IV/ AGM-RAM/iRAM/ZOCAC-I & above may take suitable
decision based on merits of each case.
18.5 Pending receipt of JRC with complete name of the branch, receipt issued by
authorized dealer/RTO in token of having accepted/deposited the required
26
papers for registration be obtained along with a letter of authority in favour of

bank official/bank agent for taking delivery of JRC from dealer/RTO. Receipt
of the JRC be ensured as per the schedule of delivery.
18.6 Regarding treatment of EMI in Car Loan accounts in the wake of upward
revision in rates of interest, borrower always has one of the following options
to exercise for repayment of loan {Clause 3(i) of ‘Letter of Hypothecation’}:
(a) To pay increased amount of EMI;
(b) To continue to pay the existing amounts of EMI with condition that the
balance outstanding in the account would be paid in one go with last
EMI of the originally applicable repayment tenor.
(c) To prolong the repayment period
Page 19 of 77
In case no option is given by the borrower, the option (c) i.e. to prolong the
repayment period appropriately be implemented, subject to the condition that
in the event of revision in interest rate to be charged in the account, if a
borrower shifts to the next higher bracket of repayment tenor, the applicable
rate of interest will be charged for the original repayment bracket/tenor.
Further, borrower is always at liberty to pay additional amount of installments

in advance to save his/her interest outgo.
Borrower should invariably be intimated about the change in interest rates, as

and when it takes place.
Necessary changes in repayment period of loan be made in the system every

time any change in interest rate is effected, so that account does not show
any irregularity in regular repayment of the loan, due to above adjustment/
reschedulement.
:58
18.7 In case of sanctioning of Housing/Car Loan in favour of HUF, Law Division,
HO, has advised as under:
"If property is proposed to be registered jointly in the names of various
12
individuals and HUF, then status of HUF can keep on changing depending
/20 28
upon the death of member or a child is born. Changing number of members
mainly of minors will create problem. We are of the view that the Scheme of
21
Housing Loan visualized joint ownership of two or more individuals. Therefore,
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HUF is not considered as joint owner under the Scheme. The same is
applicable for Car Loan also."
18.8 In order to prevent the bank from being used by unscrupulous elements, it is
emphasized that guidelines for account opening including guidelines for e-
KYC verification, issued by KYC/AML Cell, PSFID & RBD, from time to time
should be followed while opening any loan account.
18.9 Authorization from borrower/guarantor to access information from income tax

department and other authorities be mandatorily obtained as per IRMD L&A
26
circular 37/2020 dated 26.03.2020. The authorization letter be obtained along

with the loan application form. Format of authorization letter is enclosed in the
said circular.
18.10 Other Terms & Condition for Reimbursement of cost of

Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility V (SUV)
purchased by individual/ corporate out of own funds. (Not more than 3
months old):
i. The vehicle to be treated as new vehicle and finance will be on the

terms and conditions of the existing scheme for financing purchase of
car loan by public except for stipulations specifically mentioned.
Page 20 of 77
ii. Physical verification of the vehicle to be carried out by the Bank official
before financing.
iii. Simultaneously to the sanction of Car Loan by way of reimbursement,
borrower to submit copies of document submitted to Registration
Authority applying for JRC along with insurance policy. The documents
so received be held on record.
iv. The name of the bank to be got entered in the registration certificate &
insurance policy within 30 days from the date of sanction.
v. MIS code RCNCP in Free Code 7 to be entered in the CBS in MIS
detail of the account. (To be entered manually in CBS after opening the
account through LAPS).
vi. It be ensured that accidental vehicle will not be considered for financing
under any circumstances.
Note: Please refer IRMD L&A Circular 109/2019 dated 30.09.2019 which inter alia
state as under:
:58
“As all retail loans w.e.f. 01.10.2019 will be linked to external benchmark rate
(RLLR), the recently introduced retail loan schemes i.e. PNB Housing
12
Advantage, PNB Car Loan Advantage & PNB Mortgage Advantage which are
linked with RLLR launched w.e.f. 27.08.2019 shall be withdrawn. However,
/20 28
the existing loan account opened under these schemes will continue till
repayment or renewal, as the case may be.”
21
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Hence PNB Car Loan Advantage scheme circulated vide RBD (A) circular 39/2019
dated 27.08.2019 has been withdrawn w.e.f IRMD L&A Circular No. 109/2019 dated
30.09.2019. However, the existing loan account opened under these schemes will
continue till repayment or renewal, as the case may be.
26
Page 21 of 77
Annexure – B
Insta Vehicle Loan Scheme (Four Wheeler & Two Wheeler) for existing Home
Loan Borrowers
Scheme Feature:
Sr.No. Parameters Guidelines

1 Name of Scheme INSTA - VEHICLE LOAN
2 Objective To offer hassle free vehicle loan to existing Home Loan
Borrowers
3. Target Group All existing Home Loan Borrowers with satisfactory track
record of 3 years. (excluding moratorium period)
4. Purpose Purchase of car/ two wheeler for personal use.
5. Eligibility All existing home loan borrower accounts where the loan
has run for minimum 3 years (excluding moratorium
:58
period) without a single default in EMI.
6. Age of applicant Same as in Vehicle loan scheme
7. Type of facility Term Loan
12
8. Rate of Interest FLOATING:-
/20 28
RLLR+ 0.55% for four wheeler
RLLR + 1.80% for two wheeler
FIXED:- Only for four wheelers
21
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Upto 3 years : One year MCLR + 1.25%

Above 3 years: One year MCLR + 1.50%
9. Assessment of Limit 90% of On road price of Car/ two wheeler,
Maximum Rs. 10 lacs
10. Special features No pre-sanction/ Fresh Income proof required
11. Maximum Repayment Four Wheelers : 100 months
period Two Wheelers. : 84 months
12. Process fee Flat Rs.1000/- exclusive of taxes.
13. Security Hypothecation of vehicle to be purchased.
14. Documentation As per existing Car Loan Scheme.
26
15. CIBIL Fresh CIBIL to be generated

16. Prepayment Charges NIL
17. Penal Interest 2% p.a. on overdue amount.
18. Insurance Vehicle to be comprehensively insured and cost to be
borne by the borrower.
19. Appraisal Simplified process note
20. Delegated Powers Same as per Loaning Power Chart
21. Any other Guidelines Compliance of Pre Disbursement Audit guidelines.
Note: Sanction Letter/SMS shall be dispatched/sent to the eligible customers directly

from Head Office and list of such eligible borrowers under intimation to branches and
Circle Offices.
Page 22 of 77
Annexure – C
PNB Combo Loan Scheme (Housing Loan + Car Loan)
The detailed features of the scheme are enumerated below for ready
reference.
Sr. No. Parameters Details
1. Feature PNB Combo Loan Scheme aims to provide Car Loan at
concessional Rate of Interest and attractive / lucrative
Terms and conditions to Housing Loan Borrowers (Existing
and New)
2. Eligibility Housing Loan Borrowers with Sanction Limit of Rs. 15 Lacs
and above are eligible on or after creation of security on
House Property under Housing Loan.
Only Brand New 4 Wheelers will be financed under PNB

Combo Loan Scheme. Purchase of Old Car will not come
under the purview of the scheme.
:58
3. Gross Income Minimum Gross Income for Salaried Customers - Rs.
50,000/- per month.
12
For Professional and Self Employed / Businessman:
/20 28
Minimum Annual Post-Tax Income of Rs.6.00 lac as per
ITR (Average of last 3 years). However, there should be
consistent growth in Gross Income in last 3 years
21
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The total deduction from income including EMI of existing

Housing Loan and other Loan(s) and the proposed EMI of
Car Loan should not be more than 60% of Gross income
4. Rate of Interest Concession of 0.25% in Interest Rate from Card Rate in
Car Loan Product
5. Processing Fee NIL for Car Loan under PNB Combo Loan Scheme
(Housing Loan + Car Loan)
6. Margin 10% of the On Road Price of the Car.
i.e. Eligible Housing Loan Borrowers will be entitled for
Loan to the extent of 90% of on road price of the Vehicle.
26
7. Repayment The Repayment Period of the Car Loan should be less than
Period or equal to left over repayment period of Housing Loan
subject to maximum Repayment Period of 84 Months
8. Other Terms and (i) For existing Housing Loan Borrowers, the Account
Conditions should be standard with satisfactory Track Record.
(ii) In case of takeover of Housing Loan under this
scheme, the Car Loan has to be fully liquidated
before takeover.
(iii) Car Loan under this scheme should not be
sanctioned before creation of mortgage for Housing
Loan
9. Additional Car Loan will be secured through extension of Mortgage on
Security the Existing Housing Loan Property
Page 23 of 77
Annexure – I
Standard Operating Procedure to be followed while making the Disbursement
Step 1- Car dealer credentials to be verified independently (e.g. by searching Google,

visiting car manufacturer website, making telephonic call to the car dealer, personally visiting
the car dealer showroom etc). To be done by Field Officer/Branch at the time of pre
sanction.
*Suggestive measure – option of “Locate a Dealer” be exercised on official website of car

manufacturer from where address and contact no of dealer can be cross checked.
Step2 – Obtain letter from dealer/supplier for confirmation of preferred mode of payment and
account details – PNB 2020, Further, confirmation of Performa invoice & bank details for
transferring the loan amount through RTGS/NEFT be also obtained from the dealer.
:58
*Suggestive measure – Call/Email can be made to cross check bank account detail as
mentioned in the letter and price of the vehicle mentioned in the Performa invoice.
Step3- While making the Disbursement:

12
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a. Disbursement to be made preferably through NEFT/RTGS Account detail to be cross
21
checked as provided by the Car Dealer in PNB 2020.
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OR
b. However, if borrower insists for disbursement through Draft, then Draft representing
the cost of vehicle handled over (in person) to the dealer instead of delivering directly
to the borrower. (In no case DD to be handed over to the borrower).
It should be personally ensured by the Incumbent that draft representing cost of
vehicle is delivered to authorized dealer/seller of the vehicle and receipt/bill in joint
name is obtained.
*Suggestive measure- In present scenario, the option of offline mode of payment is most
unlikely, hence efforts be made to make the payment only through digital medium
(RTGS/NEFT). However, if any borrower insist on payment through demand draft only. The
same should be personally handed over to the dealer by the bank officials.
26
Step4- While making delivery of the proceeds of the vehicle, an undertaking from the Dealer/
Authorized agent be obtained and held on record that in case of cancellation of booking of
vehicle for whatsoever reason, the proceeds shall be refunded directly to the Bank and in
any case should not be refunded/ handed over to the borrower.
Step5- Obtain Pro-forma invoice & tax invoice in original.
Page 24 of 77
Appendix-1
Menu option HCLM -> Function L (Lodge)
Type V (Vehicles)
HCLM -> Particulars tab: Registration No. & Purchase Date.
:58
12
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21
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26
***************************************************************
Page 25 of 77
Application-cum-Appraisal/Sanction Form for Car Loan
Branch Office: ____________ Date of Application:_______________
Part – I Applicant/Co- Applicant information

1. Applicant’s/Co-Applicant’s Name Last: First: Middle:
2. Father’s/Husband’s Name
3. (i)Address a) Residence Present*: ____________________________________
____________________________________
. City/Location_________________________ Recent Self Attested
District ______________________________ Photograph of the
Pin Code ____________Country__________ applicant
b) Office ___________________________________
____________________________________
City/Location_________________________
District ______________________________
Pin Code ____________Country__________
(c) Residence Permanent ____________________________________

____________________________________
City/Location_________________________ 4. Category of Applicant
District ______________________________ (Tick appropriate)
Pin Code ____________Country__________
Physical Handicapped Y/N
(d) E-mail Id ____________________________________ Ex-Serviceman Y/N
Minority Y/N
(e) Mobile:
5. Telephone No. : a) Residence: ____________________________________
(with STD Code) b) Office:
6. (a) Income Tax Pan No.*
(b) (i) Voter ID No.*
(ii) Passport No.* Any one of these
(iii) Driving Licence No.*
7. Individual Type: ο Salaried ο Professional ο Self Employed ο Other
8. a) Age (yrs)
b) Date of Birth (dd/mm/yyyy)*:
c) Gender (male/female)
d) Marital Status ο Single ο Married
e) Number of dependents in the household
f) Earning Member, if any, in family excluding applicant
g) Banking with us Yes/No, if yes, a/c no. & Customer Id.
9. Qualification/Education* οMatriculation οIntermediate οGraduation οPG οPh.D.

10.Whether relative of Staff /Director of bank οYes οNo
11.Residence Ownership οOwned (self/spouse) οOwned (Parents) οOther
12.Years at current residence*
13. Collateral security provided? οYes οNo
14.Type of collateral οProperty οNSC/LIC οShares οOther
Policy/Govt. Security
15.Value of collateral (Rs.) Rs. Rs. Rs. Rs.
16.Profession, Please specify
Page 26 of 77
17.(a) If Self Employed / His/her firm is οProprietorship οPartnership οPvt. Ltd. Co. οOthers
Professional No of yrs in Business/ Profession ____________________________________________________________
Line of Activity ____________________________________________________________
Income in Last 3years(Rs.) Current Year: Last year : Year before last :
(b) If Salaried He/she works for οGovt./Public Sector ο Public Ltd.Co. ο Private Ltd.Co. ο Others
Salary account with PNB Yes/No, If yes, 16 Digit account no. and if no details of Salary Account
with Bank, Branch and Account No.
____________________________________________________________
Name of the employer ______________________________ Address ______________________
______________________
Years with current employer ________Years ; Since when: _______ ______________________
______________________
Years with previous employer(s) _____ Years; From ________ To ________
Length of Service _________________________

Date of Retirement _________________________
Designation ____________________ Since: ____________________.
Total Annual Income (Rs.)* Gross________________ Net: ____________________.
(c) If Other Occupation
Total Annual Income (Rs.)* Gross: ____________________. Net____________________.
(d) Annual deductions (statutory savings, IT etc in Rs.)*
18. Other loans taken (including previous loans from PNB):

Limit (Rs.) : ____________________
Present Outstanding (Rs.) : ____________________
Whether regular: ο Yes ο No
Monthly Repayment (Rs.) : ____________________
19. Statement of Assets and Liabilities ( Amount in `)
Liabilities Assets
Outstanding Loans/Advances Amount Amount
Immovable properties:
Land
Bank Building
Employer Movable properties:
Provident fund Cash
Relatives and friends Deposits with banks
Others Investment in Govt. Securities
Others
Total Total
Net Worth (Actual in Rs.) -_________________________
20. Spouse Information:

a) Name of the spouse: ____________________ Office Tel No. : ____________________________
b) Occupation/Profession: Office Address ____________________________
____________________________
____________________________
c) Total Annual Income*: Gross____________________ Net: ____________________
d) Is she/he furnishing guarantee? οYes οNo
e) Income Tax PAN no. ____________________________
Page 27 of 77
21. Details of Car Loan requested from PNB:
a) Vehicle to be purchased : Type :____________ Make:____________ Model:_____________
b) Total Cost of the Vehicle: Rs.____________________________________________________
c) Margin/Applicant’s Contribution: Rs.____________________________________________________
d) Loan amount Rs.____________________________________________________
e) Name & Address of the dealer to whom the ______________________________________________________
payment is to be made ______________________________________________________
__
22.Repayment Period (yrs)
23.Monthly installment a) Amount (Rs.)
b) Mode ο Advance Cheques ο Standing instructions
24.Guarantor : Whether available ? οYes οNo
25.Name, Address and telephone numbers of two references
Reference 1 Reference 2
26.Details of any pending court cases of Banks/Financial

Institutions against Applicants/Partners/Directors:
(Enclose details on an Annexure, if needed)
27. Name of the applicant borrower in whose name vehicle to
be got registered (Applicable only in case of joint borrowers)
28. I/We request for sanction of loan of Rs. _____________for purchase of ____________________ (name of vehicle)
on the basis the basis of information given above.
It is declared that:
The information given in the loan application is true and nothing has been concealed. The undersigned undertakes to
inform the Bank any change in my residence / office address and to provide any further information that the Bank may
require. The undersigned has been informed of the charges / fee to be levied by the Bank and agrees to pay upfront fee,
documentation charges, etc. as applicable and charged by the bank. The undersigned hereby agree to be bound by these
terms and conditions or by the revised additional terms and conditions which may at any time hereafter be made while the
loan obtained by me/us is still outstanding
I/We have read and have been advised the terms and conditions relating the scheme for
financing____________________________________(name of the vehicle) and I/We hereby agree to be bound by these
rules or by the revised additional terms and conditions which may at any time hereafter be made while the loan obtained
by me/us is still outstanding.
In case the loan is sanctioned I/We authorize Punjab National Bank, BO: ___________________________________ to
remit the total cost of vehicle to M/s ________________________________________________. I/We have
deposited/agreed to deposit with the bank the difference between the total cost of vehicle and the amount of loan
sanctioned and also agree to comply with all other prescribed formalities and also agree to pay processing charges as
applicable and charged by the bank.
Yours faithfully,
Signature and name(s) of applicant(s))
Note: All columns of the form should be properly filled up and supporting documents duly signed by applicant wherever
required should be attached, particularly those marked with a *. If there is a co-applicant, he/she should fill up another
form. If there is guarantor, he/she should also fill up the guarantor information (Part II)
Page 28 of 77
__________________________________________________________________
ACKNOWLEDGEMENT
*Sl. No.________ Date:____________
Received application from Mr/Ms/M/S _______________________________

R/O/Office at ______________________________________ for a ______________ (Type
of Loan) loan/ limit of Rs.___________________for ______________________________
(State the purpose). The loan application will be disposed-off and acceptance/ rejection
would be intimated within ____ days from date of receipt of completed application form with
supporting documents.
Serial number and date of the acknowledgement should be quoted in all future
correspondence.
Officer/Manager (Loans)/Incumbent
(Seal of the Receiving Branch)
*Sl. No. of the acknowledgement format should be the same as indicated in the register for
receipt of credit proposals.
Page 29 of 77
Part – II Guarantor information
1. Name
__________________________________________
Recent
2. Father’s/Husband’s Name ________________________________________________
Self-attested
3. Address a. Residence* _________________________________________________
Photograph of
_______________________________________________________
_______________________________________________________
Guarantor
_______________________________________________________
Location/City___________________________________________________
District__________________ Pin Code___________Country____________
b. Office. _____________________________________________________________
_____________________________________________________________
_____________________________________________________________
Location/City__________________________________________________
District ________________ Pin Code___________ Country___________
____________________________________________________________
c. Permanent Address _____________________________________________________________
_____________________________________________________________
Location/City__________________________________________________
District ________________ Pin Code________Country___________
_____________________________________________________________
d. E-mail Id
_____________________________________________________________
e. Mobile
_____________________________________________________________
4. Telephone No.: Residence _____________________________________________________________
(with STD code) Office _____________________________________________________________
_____________________________________________________________
5. Age (yrs.) _____________________________________________________________
6. Date of Birth (dd/mm/yyyy):* _____________________________________________________________
7. Gender (male/female) _____________________________________________________________
8. Qualification _____________________________________________________________
9. Is he/she is an Income-tax payer? _____________________________________________________________
10. Income Tax PAN no.* _____________________________________________________________
11. Voter ID No*. _____________________________________________________________
Any one of
12. Passport No.* _____________________________________________________________
10,11 or 12
13. Driving Licence No.*
14. Type of guarantor οSelf Employed οSalaried ο Professional ο Others
15. (a)If Self His/her firm is οProprietorship οPartnership οPvt. Ltd. Co. ο Others
Employed/ Years in Business
Professional Total Income in Last 2 yrs(Rs.) Last year: Year before last:
(b) If He/she works for οPrivate sector οPublic sector (including govt. enterprise) ο Others
Salaried Designation _____________________________________________________________
Name & Address of the ___________________________________________________________
employer _____________________________________________________________
Years with current employer
Yes/No, If yes, 16 Digit account no. and if no details of Salary Account
Salary a/c with PNB with Bank, Branch and Account No
_____________________________________________________________
Total Annual Income (Rs.) Last Year: Year before last:
Page 30 of 77
16.Statement of assets and liabilities of the guarantor
Liabilities Assets
Outstanding Loans and Amount Amount
Advances
Immovable properties:
Land
Bank Building
Employer Movable properties:
Provident fund Cash
Relatives and friends Deposits with banks
Others Investment in govt. Securities
Others
Total Total
Net Worth (Actual
in Rs.)
(Enclose photocopies of documentary evidence in support of the above)
17. Having fully apprised myself of the particulars submitted in loan application dated ________________for
______________________________ (mention purpose ) loan of Rs.. __________________________ to be
considered by the Bank to Shri/Smt./Miss_______________________________________________________
___________________________________________________________________________________________
_______________________________________________________________________________________Son/
Wife/Daughter of Shri___________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
______,
I have agreed to furnish my guarantee for repayment of the loan. I hereby declare that I know the above mentioned
applicant (s) very well for the last _________ no. of years. The information furnished by me is true and correct to
the best of my knowledge & belief.
(Signature and name of Guarantor)
Date:
Place:
Page 31 of 77
FOR OFFICE USE ONLY: BO _______________.
PNB Score ID :________________________PNB Score_______________
Credit Information Report : No. Score __

Borrower : ______________________________________________
Guarantor : _______________________________________________
Any Adverse report, if so

detail thereof :
Whether KYC norms in respect of all

Applicants/co a applicants/guarantors
Have been complied with :
Is the applicant/co-applicant/s are

Eligible for concessions under Women
Empowerment Scheme :
Whether it is a take over of

Loan from Bank/ FI :
Comments/recommendations of Appraising Officer

(Mention the date of visit at Borrower(s) residence/work place)
Recommended for sanction of a Car/Vehicle Loan of Rs.______________ favouring

Sh./Smt./Km.______________________________________________________for purchase of
_______________________ (Name of the Vehicle) from
____________________________________ (Name of the Supplier) subject to terms & conditions
mentioned above. The loan is proposed to be guaranteed by
Sh./Smt./Km.________________________________________ / collaterally secured by
_______________________________________________. The loan shall be repayable in
_____Equated Monthly Instalments (EMIs) of Rs._____________ commencing w.e.f.
______________. The applicable rate of interest @______________, upfront fee
Rs.____________and documentation charges Rs._______________ which be communicated through
a Sanction Letter and acknowledgement may be obtained and kept on record.
(Signature and name of Appraising Officer)
Orders of the Sanctioning Authority
(Signature and name of sanctioning authority)

Place:
Date:
PNB 1055A
Page 32 of 77
BO: __________________________ (D. No. __________)
Date: ____________
To,
_______________________
_______________________
_______________________
Dear Sir/ Madam,
YOUR APPLICATION FOR CAR/VEHICLE LOAN - SANCTION LETTER
We are pleased to inform that we have sanctioned a Car/Vehicle Loan of Rs._____________

in your favour for ___________________________________ on the undernoted terms & conditions.
Sanction Terms
Sanctioned Amount
Rate of Interest*
Type of Interest
Margin
Repayment Tenor
Number of EMIs Amt. of EMI* Rs.
Repayment to be commenced from
Amount of EMI
Upfront fee/ Processing fee Rs. Documentation Fee Rs.
Credit information report Charges Rs.
Security Guarantor (s)
Primary
Collateral
Prepayment Penalty 2% of the outstanding balance to be pre-paid, if the loan

is shifted to other Bank/Financial Institution.
Penal Interest, if any In case of default in repayment of loan/non compliance
of terms & conditions the borrower shall be liable to pay
penal interest of 2% on the default/irregular amount.
* is subject to change from time to time.

2. The above sanction is, however, subject to:
i) Execution of Loan documents as per Banks format and guidelines;
ii) The ROI/EMI is subject to change from time to time;
iii) The above sanction shall be valid for a period of six months from the date of issue of the
sanction letter.
3. Please convey acceptance for having accepted the terms & conditions of the sanction.
Thanking you.
Yours truly,
For Punjab National Bank
Authorised Signatory
PNB 2055
Page 33 of 77
MOST IMPORTANT TERMS & CONDITIONS
Retail Assets Division
1. Interest
i Interest whether floating type or fixed type will be charged in the account as per
sanction. Reset of interest will be as per stipulated in the sanction. Interest is to
be calculated on daily balance due to the Bank so long as the amount due from
the borrower is not paid in its entirety and the same will form part of the principal
and carry interest at the applicable rate at monthly rests.
ii All floating loans/credit facilities linked with MCLR/RLLR are subject to Reset
clause. On Reset date, the interest rate may change and if the same is not
acceptable to the borrower, the outstanding credit facility shall have to be
adjusted in full, failing which the bank would charge the revised interest rate from
the date of reset.
iii If the bank chooses to revise the interest rate due to the reset clause, and in
case, the borrower is not agreeable with the proposed rate fixed at the time of
reset or no consensus is arrived at mutually on rate of interest to be charged from
the reset date, pre-payment option may be exercised by the borrower for
discontinuation of the loan. In such an eventuality, no pre-payment penalty will be
levied which will provide a comfort to the good corporate borrowers. However, a
reasonable time of not more than one month shall be given to the borrower to
make arrangement for repaying the bank’s loan. After expiry of the stipulated
period, the interest rate as fixed by the bank shall be charged.
iv The bank will make efforts to keep its borrowers’ informed of any change in
interest rates through the official website (www.pnbindia.in) , annual statement of
accounts, display in its offices and general announcements from time to time.
2. Penal Interest
Penal Interest @2% will be levied in the account in case of:
i Non-payment of any installment of principal and/or interest, costs and other

charges due, on the amount in default from the date of default; or
ii Any irregularity in the Loan account; or
iii Default in Furnishing information as prescribed/called for by the Bank; or
iv Diversion or siphoning of the Loan amount; or
v Default in creation of security within the stipulated time; or
vi Non-compliance of any of the terms & conditions of this Agreement; or
vii Any other case as the Bank may deem fit.
Page 34 of 77
3. Margin/ Promoter’s contribution
The applicant should bring in their entire contribution before release of the Loan or in
the manner otherwise provided in the sanction. Further, it should also be ensured
that margin stipulated is maintained / provided at each stage of disbursement.
4. Fee & other Charges: Fees and other charges as applicable on application/
during the currency of the loan/ conversion charges for switching
i. All service charges viz. Upfront Fees/ processing Fees, Documentation Charges,
Inspection charges etc. will be charged from the applicant as per sanction before
release of credit facilities.
ii. All other event based charges like legal fees, charges for dishonour of cheques/
NACH mandate/ standing instructions, charges for drawing of Credit Information
Report from Credit Information Companies like CIBIL etc., registration of charge
with CERSAI in case of mortgage of property etc. will be recovered from the
applicant immediately on occurring of the event.
iii. Processing Fee paid by the Customer for availing the loan is non-refundable.
1. Repayment of loan
Loan to repaid in Equated Monthly Instalments (EMI) or as stipulated in the sanction

if otherwise.
6. Security
The loan will be secured by mortgage of/ hypothecation of/ charge on assets
purchased through bank funds in case of primary security and/or assets in case of
collateral security, within the stipulated time period as specified in the sanction.
Personal guarantee if any, will be obtained as per sanction.
7. Insurance
i. The borrower shall get the assets, mortgaged/ hypothecated/ charged to the
bank, insured against all risks (including third party insurance) at their own cost
with usual bank clause. A copy of the insurance policy will be kept on bank's
records also.
ii. In case the same is not complied with, the bank will get the same insured and
cost recovered from the borrower.
iii. The Borrower may avail health and/or life insurance cover for himself with the
Bank as the sole beneficiary under the policy / policies.
Page 35 of 77
8. Disbursement
i. The borrower shall submit all relevant documents as mentioned in the Sanction
Letter/Loan Agreement before disbursement.
ii. The borrower will intimate the Bank of any change in his employment/contact
details.
iii. The borrower will request for disbursement of the loan in writing (as per the
manner prescribed by Bank).
iv. The payments will preferably be made directly to vendor/ seller from whom the
applicant proposes to purchase the asset. Original bills/cash memos for all the
assets financed by bank/ payments made by the bank, shall be submitted by the
borrower to be placed on bank’s record.
v. In case of housing loan, the Loan will be released in stages as per physical
progress of the project. Before actually disbursing the loan, the Branch Head
must satisfy that the borrower has contributed the required margin for the loan. In
case of housing loan for construction of house, payment will preferably be made
directly to the suppliers.
vi. Before disbursement of Loan, applicant to ensure that all necessary statutory and
other approvals/permissions have been obtained.
vii. Loan will be utilised strictly for the purpose as per sanction. Deviation if any, will
be treated as non-compliance. h) Borrower to comply with all preconditions for
disbursement of the loan as mentioned in the Sanctioned Letter.
9. Recovery of dues
i. Customers have been explained the repayment process of the loan in respect of,
tenure, periodicity, amount and mode of repayment of the loan. No notice,
reminder or intimation is given to the customer regarding his/her obligation to pay
the EMI/ Installment regularly on due date.
ii. On non-payment of EMI/ Instalment by the due dates, Bank shall remind the
customers by making telephone calls, sending written intimations by post and
electronic medium or by making personal visits by Bank’s authorized personnel at
the addresses provided by the customer. Costs of such calls/communication
/visits shall be recovered from the customer.
iii. Notwithstanding what is stated herein, it shall be the liability of the customer to
ensure that the EMIs/ Instalments are regularly paid on the due dates.
iv. Credit information relating to any customer's account is provided to the Credit
Information Bureau (India) Limited (CIBIL) or any other licensed bureau on a
monthly basis. To avoid any adverse impact on the credit history with CIBIL, it is
Page 36 of 77
advised that the customer should ensure timely payment of the amount due on
the loan amount.
v. The recovery process of enforcement of mortgage/securities, including but not

limited to, taking possession and sale of the mortgaged property in accordance
with the procedure prescribed under the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)
or under any other law, is followed purely as per the directions laid down under
the respective law.
vi. Intimation/Reminders/Notice(s) are given to customer prior to initiating steps for
recovery of overdues, under the Negotiable Instruments Act, Civil Suit as well as
under the SARFAESI Act.
10. Customer Service:
Customer Service Queries including requirement of documents can be addressed to

the Bank through the following channels: i) Write to the branch or contact us through
toll free number 1800-180-2222 / 1800- 103-2222 / 0120-2490000 (tolled). ii) Contact
the branch within the working hours for: a. Photo Copies of loan documents, which
can be provided in 7 working days from date of placing request. Necessary
administrative fee shall be applicable. b. Original documents namely Title Deed of
Property, Registration Certificate etc. will be returned within 10 working days from
the date of closure of loan. c. Loan Account statement (time line): Within 3 working
days of the receipt of request.
11. Grievance Redressal
There can be instances where the Borrower is not satisfied with the services
provided. To highlight such instances & register a complaint the Borrower may follow
the following process: a) Borrower can meet or write to the Branch Head of the
concerned branch or b) The Borrower can complain to customer care through our
website: www.pnbindia.in or email at care@pnb.co.in or Mobile Application “wecare”
(can be downloaded through Google Playstore) or through Internet Banking/ Mobile
Banking or c) In case the grievance remains unresolved beyond a period of 15 days,
the borrower may escalate the matter to Principal Nodal Officer, Punjab National
Bank, Customer Care Division, Head Office, Sector 10 Dwarka, New Delhi 110075.
**The above list is illustrative and may vary on case to case basis.
12. For Reimbursement of cost of new Car
12.1 The vehicle to be treated as new vehicle and finance will be onthe terms and
conditions of the existing scheme for financing purchase of car loan by public
except for stipulations specifically mentioned.
12.2 Physical verification of the vehicle to be carried out by the Bank official before
financing.
12.3 Simultaneously to the sanction of Car Loan by way of reimbursement,
borrower to submit copies of document submitted to Registration Authority
Page 37 of 77
applying for JRC along with insurance policy. The documents so received be
held on record.
12.4 The name of the bank to be got entered in the registration certificate &
insurance policy within 30 days from the date of sanction
12.5 MIS code RCNCP in Free Code 7 to be entered in the CBS in MIS detail of
the account. (To be entered manually in CBS after opening the account
through LAPS).
12.6 It is to be ensured that accidental vehicle will not be considered for financing
under any circumstances.
Page 38 of 77
LETTER OF HYPOTHECATION
(FOR CAR LOAN)
Place---------------
Date----------------
The Manager,
Punjab National Bank,
..........................................
Dear Sir,
THIS Letter of Hypothecation (this “Letter” or “Agreement”)) is executed on this ____

day of _____________ , 20____;
BY
Shri __________________________________ son/ daughter/ wife of Shri
___________________________________, resident of _____________________
___________________________________, (hereinafter called the” Borrower”);
IN FAVOUR OF
Punjab National Bank, a body corporate, constituted under the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Plot
Number-04, Dwarka, Sector 10, Delhi – 110075 and, amongst others, a Branch
Office at ________________________, (hereinafter called the “Bank”).
(The Borrower and the Bank are collectively referred to as the Parties and
individually as the Party and unless it be repugnant to the subject or context the
“Borrower” and the “Bank” include their legal heirs, administrators, executors,
successors, permitted assigns, etc; the masculine gender is to be taken to include
females; and the singular includes the plural and vice versa.)
In consideration of the Bank allowing/ agreeing to allow an advance by way of term

loan of Rs.________________________________________________________
(`____________________________________________________) (the “Loan”) for
purchase of _________________________________________________(mention
the name and description of the vehicle, its make and registration etc.), I/We
________________________________________________________________
(name/s) son/daughter/wife of Shri
____________________________________________________ resident of
___________________________________________________________________
_________, (hereinafter referred to as the “Borrower” which shall, unless the context
otherwise requires, include his successors and permitted assigns), hypothecate to
the Bank the vehicle ( the “Hypothecated Vehicle”) as security for the payment of
the Loan along with interest, cost and other charges. (The term Borrower, in case
Page 39 of 77
there is more than one borrower, shall include each one of them in which case their
liability shall be JOINT & SEVERAL).
Further, on the request of the Borrower, the Bank has entered into a master
agreement dated ___________ with the Borrower (“Master Agreement”) recording
the common terms and conditions with respect to the Loan pursuant to which the
Bank has agreed to advance a sum of Rs ___________________
The Borrower hereby agrees as under:-
1. The Bank is authorized to disburse the Loan direct to the vendor, whose
bonafides have been verified by the Borrower, together with the contribution/margin
money which has already been deposited with the Bank and the Bank will not be
liable for any misdeed, wrongdoing or deficiency in service and/or in the vehicle on
the part of the vendor.
2. The Hypothecated Vehicle shall be used for personal use and will not be sold,
given on lease or on hire or otherwise parted with the possession or encumbered in
any way till the repayment of the Loan.
3. (i) The Borrower agrees that the amount of the Loan together with interest
will be paid by him regularly in ________ number of Equated Monthly Installments
(the "EMI") of `____________ (`_______________________________) comprising
of principal and interest and the first EMI shall become due for payment commencing
___________________________.
The amount of EMI shall be subject to change in accordance with the
change/revision in the Applicable Interest Rate to be charged in the Loan account,
in which event, the borrower shall exercise one of the following options for
repayment of the Loan :
a) To pay increased amount of EMI.

b) To continue to pay the existing amounts of EMI with the condition that the
balance outstanding in the Loan account would be paid in one go with last EMI of the
originally applicable repayment tenor.
c) To prolong the repayment period.
(ii) In case no option is exercised by the borrower on account of change in the

Applicable Interest Rate affecting the EMI, the option as given at (c) above will be
deemed to have been exercised by the borrower.
4. *(i) The Borrower irrevocably authorizes the Bank to recover the amount of
EMI and other charges from his SF/CA /OD accounts no._____________
maintained at the Bank’s BO: _________________ until the Loan is fully repaid and
adjusted. The Borrower further undertakes to keep sufficient balance in his said
account for recovery of the EMI by the Bank.
*(ii) The Borrower agrees to authorize his employer to remit his salary to the
Bank’s BO_____________ for crediting to his above account.
Page 40 of 77
*(iii) The Borrower hereby deposits post-dated cheques to facilitate the due
payment of the EMIs of the Loan as per the Schedule hereunder.
*(iv) The Borrower is willing to make the payment of EMIs of the Loan, through
participation in Electronic Clearing Service (ECS) of National Clearing Cell of RBI
and authorizes the Bank to raise the debits against the EMIs from his SF/CA/OD
account No.__________ maintained at BO:_________________________ of
____________Bank (Give name and address of the Bank) through ECS for
repayment of the Loan and understands that in the event of the Bank not realizing
payment from ECS for any reason whatsoever, the Borrower shall pay the EMI to
the Bank by cash or cheque along with the interest for the delayed period.
The Borrower has given the necessary mandate/will comply with the procedural
requirements for participation in ECS and also bear any service charges/fees as
prescribed by Bank/RBI from time to time.
To facilitate collection of the EMIs in the event of non-receipt of the EMIs by ECS,
the Borrower has provided the Bank with ______number of undated cheques for the
amount of the EMIs. The Borrower authorizes the Bank to fill up the dates as and
when required, but without being bound, to collect the cheques to meet defaults in
payment of the EMIs.
*Delete, if not applicable.
5. The Borrower agrees that in case the Loan is pre-paid by availing loan from
other bank/FI, he will bear and pay the prepayment charges at ___% of the
outstanding amount of the Loan pre-paid.
6. Notwithstanding the above, in case the Borrower fails to pay any three EMIs
(not necessarily consecutive) or in the case of contravention of any of the terms and
conditions herein or in case the Hypothecated Vehicle is lost or destroyed or
otherwise becomes unavailable or untraceable as a result of theft or otherwise for
any reason whatsoever, it shall be lawful for the Bank to recall by a demand in
writing the entire outstanding amount in the Loan account and the Borrower shall
pay the same notwithstanding the period of EMIs fixed as aforesaid.
7. INTEREST RATE OPTIONS
Any interest, commission or fee accruing under this Agreement will accrue from day
to day and is calculated on the basis of the actual number of days elapsed and a
year of 365 (three hundred and sixty five) days.
7.1 Terms for Fixed Interest Rate Option:
7.1.1 The fixed rate of interest is valid for the period of _____years from the date of
1st disbursement which is called ‘block period’ and it shall be reviewed and re-set by
the Bank on completion of the said Block Period. For this purpose, reset shall be
done after each block period and revised rate of interest shall be applied from 1st
Page 41 of 77
April in respect of the loan disbursed during 1st October to 31st March and from 1st
October in respect of the loan disbursed during 1st April to 30th September. The
revised rate of interest shall be applied on applicable date after completion of each
Block period. Any delay in revision /re-set of rate of interest when due shall not
exempt the borrower and the bank shall be within its right to charge and appropriate
the overdue amount accrued due to variance in the rate of interest after revision / re-
set. It is made clear that revised rate of interest shall always be applicable from 1st
April/ 1st October on completion of the ‘block period’. In case of failure to re-
set/revise the rate of interest despite becoming due in the year, does not restrict or
debar the bank from revising/re-setting of the rate of interest in the next year. If
interest rate is not revised/re-set in the year when it is due, it shall be open to Bank
to revised/re-set the rate of interest at any time in any subsequent year and, in such
an event, the revised interest rate shall be applicable from 1st April/ 1st October of the
year in which it is re-set for the remaining years of the block period.
7.1.2 The option of FIXED RATE OF INTEREST exercised by the Borrower shall
not be allowed to be changed for a minimum period of ____ year from the date of
first disbursement, which is called lock in period, unless the Bank otherwise agrees,
on such terms & conditions, including charging of fees on account of switch over, as
prescribed by the Bank from time to time.
7.1.3 On completion of lock in period, it is open to the Borrower to switch over from
Fixed rate of interest option to Floating rate of interest option. If no intimation
regarding change in the ‘interest rate option’ is received it shall be presumed that the
Borrower continues with his earlier exercised Option.
7.1.4 In case, the Bank allows the borrower to change the ‘Fixed Rate of interest’ to
‘Floating Rate of interest’, the rate of interest would be the prevailing ‘floating rate’ at
the time of change of option.
7.2 Terms of Floating Interest Rate Option
7.2.1 The option of the Floating Interest Rate exercised by the Borrower shall not
be allowed to be changed for a minimum period of ______ year from the date of first
disbursement, which is called lock in period,, unless the Bank otherwise agrees, on
such terms & conditions, including charging of fees on account of switch over , as
prescribed by the Bank from time to time.
7.2.2 On completion of the lock in period, it is open to the Borrower to switch over
from Floating rate of interest option to Fixed rate of interest option. If no intimation
regarding change in the interest rate option is received, it shall be presumed that the
Borrower continues with his earlier exercised option.
7.2.3 In case, the Bank allows the borrower to change the ‘floating rate of interest’
to ‘fixed rate of interest’ the rate of interest would be the prevailing fixed interest
rate at the time of change of option. The Option so exercised shall be applicable
for remaining Block Period.
Page 42 of 77
7.3 Exercise of Option
7.3.1 The Borrower hereby exercises the option of *“Floating Interest Rate” / “Fixed
Interest Rate” to pay interest on loan amount and agrees to pay interest at
………...% as spread over _______ Marginal Cost of Funds Based Lending Rate
(MCLR) of the Bank, presently being ……..%, (hereinafter referred to as the
“Benchmark Rate”) i.e ……..% per ________ with _______ rests plus applicable
interest tax, if any.
OR
The Borrower hereby exercises the *“Floating Interest Rate” Option and agrees to
pay interest at ………...% as spread over REPO LINKED LENDING RATE (RLLR)
of the Bank, presently being ……..%, (hereinafter referred to as the “Benchmark
Rate”) i.e ……..% per ____ with ____rests plus applicable interest tax, if any. The
RLLR / Spread will be changed from time to time by the Bank subject to the reset of
interest rate after an interval of months/year as decided by the Bank.
In case of change in repo rate by the RBI, the repo rate linked rate (RLLR) will be changed
from the first day of the following month.
7.3.2 The _____________ MCLR/RLLR will be changed from time to time by the
Bank subject to the reset of interest rate after an interval of ___________ months.
7.3.3 Notwithstanding any other clause of the agreement, the Spread and the
Benchmark Rate of interest payable by the Borrower and the periodicity of rests shall
be subject to the changes/variations made by Reserve Bank of India/the Bank as the
case may be from time to time and the revised rate of interest shall accordingly be
charged and shall not require any separate communication to the customers from
the bank.
7.3.4 In the event of there not being any Spread and/or Reference Rate, the
borrower agrees to pay the interest at the rate as prescribed by the Bank from time
to time.
7.3.5 The interest shall be calculated on daily balance basis due to the Bank and
shall be charged on the last day of the month so long as the amount due is not
repaid in its entirety and shall form part of the principal and carry interest at the
Applicable Interest Rate.
8. Notwithstanding the above, if the Bank, on the request of the Borrower, in its
discretion decides to make available to the Borrower the option of application of
lower rate of interest, as applicable to fresh Loans under the Scheme, it is open to
the Bank to charge and levy a Switchover Fee at the rate prescribed by the Bank.
9. The Borrower agrees to pay additional interest at______% p.a. with agreed
rests in case of default in:
a) Payment of interest and/or any installment on the due dates, on the amount in
default from the date of default; or
Page 43 of 77
b) Furnishing information as prescribed/called for by the Bank; or
c) Non-compliance of any other terms & conditions
In addition and without prejudice to the Bank’s remedies under this Agreement and
under applicable law, the Bank shall have the option to recall the entire outstanding
and the Borrower undertakes to pay the amount outstanding upon demand by the
Bank.
10. The Borrower also agrees that in case the amount outstanding in the Loan
account is not paid by him after demand in writing by the Bank, it shall be lawful for
the Bank and its officers to call on him and take possession of the Hypothecated
Vehicle. In case of default on his part to deliver possession, it shall be lawful for the
Bank and its officers to take possession of the Hypothecated Vehicle from him and
sell the same by private contract or otherwise as pledgee / hypothecate / mortgagee
for adjustment of the Loan account at his risk and responsibility, and get the same
transferred in the name of the purchaser by signing the necessary documents
without reference to the Borrower and he undertakes to pay the amount of shortfall,
if any.
11. The Borrower undertakes to keep the Hypothecated Vehicle insured for its
full value by taking comprehensive policy (including third party insurance) in the joint
names of the Bank and the Borrower with agreed Bank clause with any Insurance
Company approved by the Bank. The Borrower shall produce the relevant policy or
policies of insurance along with receipt of premia paid to the insurance company
from time to time for its inspection regularly. In case the Borrower fails to keep the
Hypothecated Vehicle insured and to produce such policy or policies and receipts to
the Bank, the Bank shall be at liberty, but not bound, to effect such insurance and
pay such premia at the Borrower’s expense by debiting to the Loan account and the
amount of premia shall form part of the Borrower’s indebtedness to the Bank under
the Loan and be secured fully by the hypothecation hereby created. .
12. The Borrower further declares and agrees: -
a) that upon any money becoming payable under the policy, the Bank shall be
entitled to receive the same.
b) that the receipt of the Bank shall be a complete and good discharge of the
insurance company
c) that any adjustment, settlement, compromise or reference to arbitration in
connection with any dispute between the company and the insured or any of them
arising under or in connection with the insurance policy if made by the Bank shall be
valid and binding on all parties, but not so as to impair the right of the Bank to
recover the full amount of any claim it may have on other parties and
d) that any sum received under such insurance shall be applied in or towards
liquidation of the amount due to the Bank on account of the Loan, interest and other
charges as aforesaid and in the event of there being a surplus the same shall be
refunded to the Borrower, if no other amount is due from him.
Page 44 of 77
13. The Hypothecated Vehicle will be got registered with the appropriate transport
authority in the joint names of the Bank and the Borrower.
14. The Borrower agrees and hereby gives to the Bank during the currency and
for the payment of the Loan, a general lien and right to set off; and combine
accounts without notice; and charge on all movable property of every description
coming into the Bank’s possession on account of the Borrower for the time being
held by the Bank on behalf of the Borrower whether singly or jointly with others in
India or elsewhere including, without prejudice to the generality, any monies, bullion,
deposits, deposit receipts, promissory notes, bill of exchange, cheques, railway
receipts, Govt. bills and other documents/securities of every description.
15. That any demand herein may be made on the Borrower by an officer of the
Bank or any notice in writing under the hands of any such officer either served
personally on the Borrower or left at or sent by post to him at his address
registered/available with the Bank. (Notice served on any one of the Borrowers shall
be deemed to have been served on all of them.)*
*Applicable only in case of more than one borrower
16. The Borrower agrees not to induct any person in its board of director who has
been identified as willful defaulter as per directions/guidelines of RBI or Bank. . If
any Director who is willful defaulter as per definition above referred is on its Board,
the Borrower undertakes to get him removed from the Board. The Borrower agrees
to make necessary amendment in the Article of Association of the Borrower /
Company to make the above requirement a ground for removal of directors and
furnish a copy of Articles of Association as amended to the Bank. (This sub-clause
is applicable only in case of corporate borrower/s).
17. The Borrower undertakes that the funds borrowed under this Agreement shall
be utilized by it for the purpose for which the Loan / Facility has been allowed and
also agrees to furnish to the Bank, as and when asked by the Bank, a certificate to
the effect that the funds so borrowed have been utilized for the purpose for which the
Loan has been allowed.
18. The Bank is not bound to monitor or verify the end use or application of any
amount borrowed pursuant to this Agreement and any sanction letter(s) issued by
the Bank to the Borrower in connection with this Agreement and any other
agreement(s) entered into between the Borrower and the Bank in relation to the
Facility (collectively with this Agreement, the “Finance Documents”).
19. The Borrower shall do all such acts, deeds and things as may be reasonably
required by the Bank, in accordance with applicable law, to co-operate with the Bank
in relation to filing of Form I by the Bank with the Central Registry under section 23 of
the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (“SARFAESI Act”), read with the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest (Central
Page 45 of 77
Registry) Rules, 2011, in relation to the security created on the _________________
(description of security), immediately after the execution of this Agreement.
20. In addition to the Events of Default set out in the Master Agreement, the
occurrence of a Cross Default will constitute an Event of Default under this
Agreement. An event of Cross Default shall be deemed to have occurred upon
occurrence of any of the following:
(a) Any financial indebtedness of the Borrower is not paid when due nor within
any originally applicable grace period.
(b) Any financial indebtedness of the Borrower is declared to be or otherwise

becomes due and payable prior to its specified maturity as a result of any actual or
potential default, event of default, or any similar event (however described) after the
expiry of any originally applicable grace period.
(c) Any commitment for any financial indebtedness of the Borrower is cancelled
or suspended as a result of any actual or potential default, event of default, or any
similar event (however described) after the expiry of any originally applicable grace
period.
(d) Any creditor of the Borrower becomes entitled to declare any financial
indebtedness of the Borrower due and payable prior to its specified maturity as a
result of any actual or potential default, event of default, or any similar event
(however described) after the expiry of any originally applicable grace period.
(e) Any security over any assets of the Borrower is enforced by the holder of such
security, or any analogous procedure or step is taken in any jurisdiction.
(f) There is an event of default or potential event of default (howsoever

described) or other similar condition or event which with the lapse of time or giving of
notice may become an event of default under one or more agreements or
instruments relating to any indebtedness granted by any person to the Borrower.
21. All Events of Default set out in the Master Agreement are incorporated mutatis
mutandis herein.
22. Upon the occurrence of an Event of Default, as stated in this

Agreement/Master Agreement, including Cross Default as described hereinabove,
the Borrower shall render itself liable to legal action and the Bank shall be entitled to
terminate this Agreement, recall the facility and resort to any other legal recourse
available to the Bank, without any notice to the Borrower and realise the Bank’s
dues and recover the balance of its claim from the Borrower.
23. The Borrower hereby agrees as a pre-condition of the Loan / Facility given to
the Borrower by the Bank that in case the Borrower commits default in the
repayment of the Loan / Facility or in the repayment of interest thereon or any of the
Page 46 of 77
agreed installment of the Loan on due dates, or commits ‘wilful default’; the Bank
and/or the RBI will have an unqualified right to disclose or publish the Borrower’s
name, photograph, or the name of the Borrower’s company/firm/unit and its
directors, partners, proprietors as defaulter/wilful defaulter as the case may be, in
such manner and through such medium as the Bank or the RBI in their absolute
discretion may think fit.
24. That the Borrower/s hereby give/s specific consent to the Bank for disclosing /
submitting the ‘financial information’ as defined in section 3(13) of the Insolvency and
Bankruptcy Code, 2016 (hereinafter the “IBC”) read with relevant regulations / rules
framed under the IBC, as amended and in force from time to time and as specified
there under from time to time, to any ‘information utility’ as defined in section 3(21) of
the IBC, in accordance with the relevant regulations framed thereunder, and
directions issued by the RBI to banks from time to time and hereby specifically
agrees to promptly authenticate the ‘financial information’ submitted by the Bank, as
and when requested by the concerned information utility.
25. The Borrower understands that as a pre-condition relating to grant of the Loan
to the Borrower, the Bank, requires the Borrower’s consent for the disclosure by the
Bank of information and data relating to the Borrower of the Loan facility availed of to
be availed by the Borrower, obligations assumed to be assumed by the Borrower in
relation thereto and default if any committed by the Borrower in discharge thereof.
Accordingly the Borrower hereby agrees and gives consent for the disclosure by the
Bank of all or any such-
(a) Information and data relating to the Borrower;
(b) Information or data relating to any loan / credit facility availed of/to be availed,
by the Borrower, and
(c) Default, if any, committed by the Borrower, in discharge of the Borrower's
such obligation, as the Bank may deem appropriate and necessary, to disclose and
furnish to the Credit Information Bureau (India) Ltd. and/or any other agency
authorized in this behalf by RBI.
26. The Borrower agrees to execute such further or other documents/deeds as

and when required by the Bank in respect of the Facility.
27. That the Borrower shall not have any right to assign its obligations under this
Agreement. However, the Bank has the right to transfer, assign, securitize or sell in
any manner, in whole or in part, the outstandings and dues under the Facility to any
third party without reference or intimation to the Borrower and any such
transfer/assignment/sale/securitization shall conclusively bind the Borrower and all
other persons.
28. The Borrower shall bear and promptly pay the Bank the following:
(a) all fees for services performed by the Bank, all out of pocket, travelling
expenses and other costs, charges and expenses reasonably incurred by the Bank,
its officers, employees or agents in connection with the negotiation, preparation,
Page 47 of 77
execution, modification or amendment of any documents or instruments
contemplated or in connection with or relating to the Finance Documents;
(b) all fees, costs and expenses incurred in connection with the preservation,
protection or release of the rights of the Bank on exercise of any rights, remedies or
powers granted under any Finance Documents;
(c) all fees, costs and expenses incurred in connection with the enforcement of
any rights hereunder and/or under any other Finance Document including any cost
incurred in the assertion or defence of the rights of the Bank, for the protection and
preservation of whole or any part of the security and for the demand, realisation and
recovery of any amounts due and outstanding under the Finance Documents; and
(d) all stamp duty, taxes, charges and penalties on any Finance Documents if
and when the Borrower may be required to pay the same according to the applicable
laws.
29. For Corporate Borrowers:(*delete, if not applicable)
The Borrower shall promptly, and in any event within ______ days of the execution
of this Agreement, sign such other documents and do all such acts and things as
shall be necessary in accordance with applicable law to perfect the charge created
under this Agreement in favour of the Bank, in accordance with this Agreement,
including without limitation,
(a) recording the security created over the hypothecated goods under this
Agreement pursuant to Section 77 of the Companies Act, 2013 read with the
Companies (Registration of Charges) Rules, 2014 by filing duly completed Form
CHG.1 with the relevant registrar of companies (“ROC”) no later than 7 (seven) days
from the date on which security is created by the Borrower; and
(b) delivering to the Bank, a copy of Form CHG.1 filed as per (a) above along
with a payment receipt evidencing that the Form CHG.1 has been filed with the
ROC, no later than 7 (seven) days from the date on which security is created by the
Borrower.
The Borrower shall, within 30 (thirty) days of the execution of this Agreement, deliver
to the Bank a certified true copy of the certificate of registration of charge issued by
the ROC.
30. No failure to exercise, nor any delay in exercising, on the part of the Bank,
any right or remedy under this Agreement shall operate as a waiver, nor shall any
single or partial exercise of any right or remedy prevent any further or other exercise
or the exercise of any other right or remedy. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided by
law.
Page 48 of 77
31. If, at any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction will in any way
be affected or impaired.
32. Any term of this Agreement may be amended or waived only with the consent
of the Bank and the Borrower in writing and any such amendment or waiver will be
binding.
33. This Agreement may be executed in any number of counterparts, and this has
the same effect as if the signatures on the counterparts were on a single copy of the
Agreement.
34. Any certification or determination by the Bank of a rate or amount under this
Agreement is, in the absence of manifest error, conclusive evidence of the matters to
which it relates.
That the contents of the Agreement have been read over and translated
into________________vernacular language [name of the language of the
borrower(s)] and the borrower[s] having understood the contents thereof
subscribe(s) to these presents.
SCHEDULE
DATE OF CHEQUES* AMOUNT
1.
2.
3.
4.
5.
Yours faithfully,
Signature-------------------------------
Name-----------------------------------
* Note: Advance cheques may be obtained under the Scheme. The number, amount
and dates of such cheques should be synchronizing with the number, amount and
due dates of term Loan installments. Such cheques should be drawn favouring
‘Punjab National Bank” and on the reverse of the cheques, ‘payment of installment in
term Loan account No. ____ ‘can be written.
PNB 910
Page 49 of 77
IRREVOCABLE LETTER OF AUTHORITY FROM BORROWER AUTHORISING THE
EMLPOYER TO REMIT SALARY/INSTALMENT AND OTHER AMOUNT PAYABLE TO THE
BANK CUM LETTER OF ACKNOWLDGEMENT FROM EMPLOYER
To
------------------------------------
------------------------------------
------------------------------------
REG: __________________ LOAN OF `_____________________

(`__________________________________________________)
A/C No. ___________ SANCTIONED TO ME BY PUNJAB NATIONAL BANK
BO:___________________________.
Dear Sir,
The above loan has been sanctioned to me by Punjab National Bank (PNB).
*I hereby authorise you to remit my salary every month to PNB

BO:______________________ for crediting my account No. ______________.
*I hereby authorise you to pay a sum of `_________(`._____________________

_____________only) every month from my salary to PNB BO:__________________for
credit to my aforesaid loan account No. __________with them.
I hereby authorise you to remit the amount payable to me by way terminal benefits and
gratuity, by reason of my retirement, resignation or discontinuing in the service for any
reason, to PNB BO:________________________ for crediting to my aforesaid loan account
No. _________ with them.
This authority is irrevocable until the loan amount mentioned above with interest is paid in
full and written consent of the Bank is obtained.
Yours faithfully,
PLACE: ____________
ADDRESS: ____________
DATED: ____________
SIGNATURE_________________________
NAME OF EMPLOYEE__________________
* DELETE WHICHEVER IS NOT APPLICABLE

We have received the above letter of authority of Sh._____________________ and noted
for compliance.
_____________________
(EMPLOYER)
Signature & stamp of the officer authorised to disburse salary and allowance
PLACE :_________________
DATED:_________________
PNB 1134
Page 50 of 77
AGREEMENT OF GUARANTEE
This Agreement of Guarantee (this “Agreement”) is made at _________________________

(Place) on this_______day of__________________________'20______,
Between
Shri/Ms ____________________________________________son / daughter/wife of Shri
________________________ resident of ______________________________________
M/s_______________________________________, a company within the meaning of the
Companies Act, 1956 having its Registered Office at _____________________________
_________________________________ (through Shri/Ms._______________________,
______________(designation), as authorized vide its Board Resolution dated _______)
(hereinafter called the “Guarantor(s)” which term shall, wherever the context so permits,
mean and include his/her/their heirs, administrators, executors, successors, and permitted
assigns) of the first part;
AND
Punjab National Bank, a body corporate constituted under the Banking Companies
(Acquisition and Transfer of Undertakings ) Act 1970, having its Head Office at Plot No.4,
Sector-10, Dwarka, New Delhi – 110075 and, inter alia, a Branch Office at _____________
(Hereinafter called the “Bank”, which term shall, wherever the context so permits, mean and
include its successors and assigns) of the second Part.
WHEREAS
A. At the request of the Guarantor(s) the Bank has agreed to allow/ continue/enhance
an accommodation by way of _________________________________________(the
“Facilities”/ “Limits”) to Shri/Ms/Messrs.
___________________________________________________________________
________
(Hereinafter called the “Borrower”) on the terms and conditions contained in the
loaning and security documents executed by the Borrower; and
B. The Guarantor(s) has/have agreed to guarantee due payment of the amount which at
any time may be due to the Bank in respect of the said Facilities / Limits of
Rs.__________________(Rupees_____________________________________)
NOW THIS AGREEMENT WITNESSETH AS UNDER:
1. That in consideration of the Bank allowing/continuing/ enhancing at the request of the

Guarantor(s) an accommodation by way
of__________________________________________________________________
______ of Rs. ______________(the “Facilities”/ “Limits”) to the Borrower at its
Branch Office at _________________________ on the terms and conditions
contained in the loaning and security documents executed by the Borrower on
_____________________, the Guarantor(s) hereby agree(s) with the Bank as
under:-
Page 51 of 77
2. The Guarantor(s) hereby guarantee(s) jointly and severally to pay to the Bank after
demand in writing all principal, interest, cost, charges and expenses due and which
may at any time become due to the Bank from the Borrower in the accounts opened
in respect of the said Facilities/Limits (hereinafter called the “said accounts”) down to
the date of payment and also all losses or damages, costs, charges and expenses
and in the case of legal costs, as between attorney and client occasioned to the Bank
by reason of omission, failure or default temporary or otherwise in such payment by
the Borrower or by the Guarantor(s) or any of them including costs (as aforesaid) of
enforcement or attempted enforcement of payment by suit or otherwise or by sale or
realization or attempted realization or sale of any security for the said indebtedness
or otherwise howsoever or any costs (which costs to be as aforesaid) charges or
expenses which the Bank may incur by being joined in any proceeding to which the
Bank may be made or may make itself party either with or without others in
connection with any such securities or any proceeds thereof.
3. The Guarantor(s) hereby declare(s) that this guarantee shall be a continuing

guarantee and remain operative in respect of each of the said Limits severally and
may be enforced as such in the discretion of the Bank, as if each of the Facilities /
Limits had been separately guaranteed by him/her/them. This guarantee shall not be
considered as cancelled or in any way affected by the fact that at any time or from
time to time any of the said accounts may show no liability against the Borrower or
may even show credit in his/her/their favour but shall continue and remain in
operation in respect of all subsequent transactions till the accounts are closed. This
guarantee is in addition to, and shall not be affected by, nor merge with, and may be
enforced despite the existence, invalidity or unenforceability of, any other guarantee,
undertaking or security interest now or subsequently held by the Bank. For the
avoidance of doubt, it is hereby clarified that this guarantee will extend to the ultimate
balance of all sums payable by the Borrower(s) under the Facilities/Limits, until it is
released in accordance with the terms hereof, regardless of any intermediate
payment or discharge of the whole or any part of the debt due and payable by the
Borrower.
4. Representations and Warranties
(a) The Guarantor(s) make(s) the representations and warranties to the Bank as
set out in Schedule I (Representations and Warranties of the Guarantor) of
this Agreement.
(b) Each of the representations and warranties set out in Clause 4(a) above, read
with Schedule I (Representations and Warranties of the Guarantor), is
deemed to be made by the Guarantor with reference to the facts and
circumstances existing on the date of this Agreement and shall be deemed to
be repeated on each day until all outstanding amounts under the loan and
security documents executed by the Borrower in connection with the
Facilities/Limits have been duly repaid by the Borrower to the Bank.
5. Covenants and Undertakings
The Guarantor(s) agree(s) and undertake(s) to abide by the covenants and

undertakings set out in Part A (General Covenants) and Part B (Information
Covenants) of Schedule II (Covenants and Undertakings of the Guarantor) of this
Agreement at all times until all outstanding amounts under the loan and security
Page 52 of 77
documents in connection with the Facilities/Limits executed by the Borrower have
been duly repaid by the Borrower to the Bank.
6. The Guarantor(s) hereby consent(s) to the Bank making any variance, without
reference or notice to him / her / them, that it may think fit in the terms of contract,
including any change in rate of interest charged to the accounts of the Borrower. The
Guarantor(s) further consent(s) to the Bank accepting additional collateral security of
any kind, determining, enlarging or varying any credit to the Borrower or making any
composition with him or promising to give him time or not to sue him and the Bank
parting with any security it may hold for the guaranteed debt. The Guarantor(s) also
agree(s) that he/she/they shall not be discharged from his/her/their liability by the
Bank releasing the Borrower or by any action or omission of the Bank, the legal
consequences of which may discharge the Borrower or by any act of the Bank which
would, but for this present provision, be inconsistent with his/her/their rights as
Guarantor(s) or by the Bank's omission to do any act which, but for this present
provision, the Bank's duty to the Guarantor(s) would have required the Bank to do.
Though as between the borrower and the guarantor(s) he /she/they is/are
guarantor(s) only, the guarantor(s) agree(s) that as between the Bank and the
Guarantor(s) he/she/they is/are debtor(s) jointly with the borrower and accordingly
he/she/they shall not as such be entitled to claim the benefit of legal consequences
of any variation in the terms of the contract and to any of the rights conferred on a
Guarantor by Sections 133, 134, 135, 139 and 141 of the Indian Contract Act. The
Guarantor(s) further agree(s) that the acceptance by the Bank of any irregular
payments or any amount short of the amount of agreed installment/s. whether made
before or on due dates or thereafter by the Borrower, shall not discharge the
Guarantor(s) from his/her/their liability and such acceptance will not amount to or
create any new or fresh contract. The Guarantor(s) further agree(s) that the Bank
shall be under no obligation to notify him/her/them, any default committed by the
Borrower at any time or from time to time.
7. The Guarantor(s) hereby consent(s) to the Bank renewing from time to time the said
Facilities / Limits of Rs._________________ allowed to the Borrower, obtaining fresh
documents from him/her/them, closing the existing accounts, opening new accounts,
or transferring the same or part thereof to any branch of the Bank. Notwithstanding
this, the Guarantor(s) agree(s) and declare(s) that he/she/they shall remain liable to
the Bank for any indebtedness of the Borrower under the renewed facilities / limits
and the terms and conditions of this Agreement shall apply and govern his/her/their
liability under the renewed facilities / limits.
8. The Guarantor(s) further declare(s) that all dividends, compositions or payment

received by the Bank from the Guarantor(s) or any other persons liable to
him/her/them or his/her/ their representative shall be taken and applied as payment
in gross and the Guarantor(s) and his/her/their representatives shall have no right to
claim the benefit of any such dividends, compositions or payment until full amount of
all claims of the Bank against the Borrower and his/her/their representatives which
are covered by this Agreement shall have been paid.
9. No advance, overdraft or other credit facilities that the Bank may give to the Borrower
beyond the Limits mentioned in para No.1 above or obtaining of any other guarantee
or security from the Borrower shall determine, prejudice or lessen the liability of the
Guarantor(s) hereunder.
Page 53 of 77
10. The Guarantor(s) further agree(s) that any accounts settled between the Bank and
the Borrower or the balance admitted or confirmed by him or his authorized agents
as due on the said accounts to the Bank will be conclusive and shall not be disputed
or questioned by the Guarantor(s).
11. The Guarantor(s) authorize(s) and appoint(s) each of the Borrower or any person
duly authorized by them as agent to confirm the balance due and acknowledge
liability on his/her/their behalf as guarantor(s) from time to time. The Guarantor(s)
further agree(s) that any acknowledgement of liability made by the Borrower or any
person duly authorized by him/her/them to operate the accounts or any of the co-
Guarantors as agent on behalf of the Guarantor(s) shall be binding on him/her/them
for giving fresh start of limitation and also for admission of liability against
him/her/them.
12. Cross Default
(a) In addition to the events of default (howsoever described) set out in the loan
documents and security documents executed in relation to the Facilities/Limits
by the Borrower, the following will constitute an event of default under the
Facilities/Limits:
(i) Any financial indebtedness of the Guarantor is not paid when due nor
within any originally applicable grace period.
(ii) Any financial indebtedness of the Guarantor is declared to be or

otherwise becomes due and payable prior to its specified maturity as a
result of any actual or potential default, event of default, or any similar
event (however described) after the expiry of any originally applicable
grace period.
(iii) Any commitment for any financial indebtedness of the Guarantor is

cancelled or suspended as a result of any actual or potential default,
event of default, or any similar event (however described) after the
expiry of any originally applicable grace period.
(iv) Any creditor of the Guarantor becomes entitled to declare any financial
indebtedness of the Guarantor due and payable prior to its specified
maturity as a result of any actual or potential default, event of default,
or any similar event (however described) after the expiry of any
originally applicable grace period.
(v) Any security over any assets of the Guarantor is enforced by the
holder of such security, or any analogous procedure or step is taken in
any jurisdiction.
(vi) There is an event of default or potential event of default (howsoever

described) or other similar condition or event which with the lapse of
time or giving of notice may become an event of default under one or
more agreements or instruments relating to any indebtedness granted
by any person to the Guarantor.
(vii) Each of the events described in Clause 12(a) above shall constitute an
Page 54 of 77
event of default (howsoever described) under each of the loan and
security documents executed in relation to the Facilities / Limits by the
Borrower.
13. In case the Bank sells the hypothecated, pledged or mortgaged security/ies held in
the loan accounts, the Guarantor(s) agree(s) that the Bank may sell the said
securities without giving any notice of such sale to the Guarantor(s). The
Guarantor(s), agree(s) that he/she/they will not question the sale or the sale price in
any manner or on any ground whatsoever.
14. In case the amount guaranteed by the Guarantor(s) is paid by the Borrower(s) to the
Bank and the Bank in consequence discharges the Guarantor(s) from all liabilities
under this Agreement, but it is subsequently determined by a Court of Law or
otherwise that the said payment was a fraudulent preference and the Bank is made
to refund the said amount, the Guarantor(s)' liability to the Bank on the basis of this
Agreement shall revive to the same extent and in the same manner as if such
payment had never been made.
15. The Guarantor(s) also agree(s) that the Bank may enforce the guarantee without
enforcing, selling or realizing any of the securities kept under lien, hypothecated,
pledged or mortgaged with it, notwithstanding that any bills or other instruments
given by the Borrower in the said accounts may be in circulation for collection and
outstanding.
16. The guarantee hereby given shall not be determinable or taken as satisfied by the
Guarantor(s) except on the terms of his/her/their making full payment up to the limit
of his/her/their guarantee for any then outstanding liabilities or obligations on the said
account. The guarantee shall not be affected by his/her/their death or insanity until
the Bank shall have received formal authentic notice in writing thereof.
17. If the Guarantor(s) has/have or shall hereafter take any security from the Borrower in
respect of his/her/their liability under this Agreement, the Guarantor(s) will not prove
in the liquidation of the Borrower in respect thereof to the prejudice of the Bank and
such security shall stand as security and shall be forth with deposited with the Bank.
18. So long as any money remains owing under this Agreement, the Bank shall have lien
on all moneys standing to the credit of the Guarantor(s) and on any securities or
goods in the hands of the Bank belonging to any of the Guarantor(s) and the Bank
shall be entitled to appropriate/set off/realize the same.
19. The absence or infirmity in the borrowing powers on the part of the Borrower or any
irregularity whatsoever in the exercise thereof shall not affect the liability of the
Guarantor(s) and any moneys advanced to the Borrower shall be deemed to be due
and owing notwithstanding such absence, infirmity or irregularity and this Agreement
shall not be affected by any change in the name or constitution of the Borrower. It is
further expressly agreed that this Agreement shall remain enforceable against the
Guarantor(s) irrespective of the fact whether the contract between the Borrower and
the Bank is enforceable at law or not. It is also expressly agreed that in case the
guarantee given by the Guarantor(s) cannot be enforced or becomes unenforceable
at law for any reason whatsoever, the guarantee given hereunder be enforced as an
indemnity against the Guarantor(s) and he/she/they agree(s) and undertake(s) to
indemnify and reimburse the Bank for any loss, damages, costs and other charges
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which the Bank may have to recover and realize from the Borrower in his/her/their
loan accounts with it.
20. Any notice by the Bank in writing under this Agreement or a demand in writing shall
be deemed to have been duly given to the Guarantor(s) by sending the same by post
addressed to him/her/them at the address herein written and shall be effectual
notwithstanding any change of residence or death and notwithstanding the notice
thereof to the Bank and such demand shall be deemed to have been received by the
Guarantor(s) 24 hours after the posting thereof and shall be sufficient to prove that
the letter containing the demand was properly addressed and posted.
21. The Guarantor(s) agree(s) that a copy of account of the Borrower contained in the
Bank books of accounts signed by the Manager for the time being of the office at
which such accounts shall be kept or any officer of the Bank shall be conclusive
evidence against him/her/them of the amount for the time being due to the Bank from
the Borrower in any account or other proceedings brought against him/her them upon
this Agreement.
22. If any payment to, or any discharge or arrangement is made in whole or in part on the
faith of any payment by, the Bank in respect of the Facilities/Limits which is avoided,
set-aside or reduced for any reason whatsoever, including without limitation,
insolvency, insolvency resolution, bankruptcy or liquidation, breach of fiduciary or
statutory duties, the liability of each Guarantor shall continue under this Agreement
and the Bank will be entitled to subsequently enforce the guarantee and recover the
value of the debt as if the payment, discharge arrangement, avoidance or reduction
had not occurred.
23. Liability Unaffected
Each Guarantor’s liability under this Agreement will not be discharged, diminished or
otherwise affected by any act, omission or circumstance (whether or not known to
such Guarantor) which, but for this provision, would discharge it to any extent,
including:
(a) any change in the constitution, ownership or corporate existence or any

acquisition, merger or amalgamation of the Borrower or any other person;
(b) the winding-up, bankruptcy, liquidation, insolvency, insolvency resolution,

liquidation, bankruptcy or similar situation or proceeding in respect of the
Borrower or any Guarantor or any other person (as applicable);
(c) any change in the management of the Borrower or any other person or take-
over of the management of the Borrower or any other person by any
governmental authority or the nationalisation of any person or any of its
undertakings, pursuant to applicable law;
(d) any non-presentation or non-observance of any formality or other requirement

in respect of any instrument or any failure to realise the full value of any
security, guarantee or undertaking;
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(e) total or partial invalidity or unenforceability of any other transaction document
or any provisions thereof or any obligation of the Borrower or any Guarantor
or any other person under any transaction document in connection with
Facilities/Limits;
(f) any act or omission by the Bank or any other person in taking up, perfecting
or enforcing any security, indemnity, undertaking or guarantee from or against
any person or any failure to realise the full value of any security interest;
(g) any intermediate payment or discharge in whole or any part of the debt;
(h) the granting of any time or other indulgence, arrangement, compromise,

waiver, discharge, release or variation to the Borrower, any Guarantor or any
other person under the transaction document in connection with
Facilities/Limits;
(i) any incapacity or lack of power (or any irregularity in the exercise of such
powers), authority, unenforceability, illegality or invalidity of any obligation of
any person under any transaction document in connection with
Facilities/Limits or any other document or security;
(j) any amendment (however fundamental) of a transaction document in

connection with Facilities/Limits or any other document or security, guarantee
or undertaking;
(k) any person becoming, or ceasing to be a party with the Bank to any
document relating to the Facilities/Limits or becoming a party to any
document relating to the Facilities/Limits in place of the Bank, in each case,
pursuant to the rights of assignment, charge, novation or other succession or
alienation expressly conferred by such document relating to the
Facilities/Limits; or
(l) any dispute between the Borrower, any Guarantor or any other person and
the Bank pending before any court, tribunal, arbitrator or any other similar
forum.
24. Waiver of Guarantor’s Rights
(a) Until the repayment of the dues by the Borrower in connection with the
Facilities/Limits or unless the Bank otherwise directs, no Guarantor will by
reason of performance of any of his/her obligations under this Agreement:
(i) exercise any rights of subrogation, contribution, indemnity, set-off or
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counterclaim or any similar rights against the Borrower or any other
person; or
(ii) participate in any other guarantee or security favouring the Bank in

respect of the Facilities/Limits; or
(iii) prove in competition to the Bank in the bankruptcy, insolvency,

insolvency resolution or winding up of the Borrower; or
(iv) claim, rank, prove or vote as a creditor of the Borrower(s) or their

estate in competition with the Bank; or
(v) be entitled to the rights conferred on sureties, notwithstanding

anything contained in the Indian Contract Act, 1872.
(b) If any Guarantor receives any moneys as a result of the exercise of any of the
rights mentioned in Clause 24(a) above or in respect of any payment by such
Guarantor under this Agreement, then such Guarantor will hold them on trust
for the Bank and pay them immediately to the Bank so long as any sums in
relation to the debt are outstanding.
25. The Guarantor(s) hereby agree(s) that in case of any default in the repayment of the
dues under the Facilities / Limits, including the interest, installment, charges, etc., by
the Borrower and / or any default committed by the Guarantor(s) in discharging
his/her/their obligations under this Agreement, the Bank and/or Reserve Bank of
India will have an unqualified right to disclose or publish the Guarantor(s) names or
the names of the Guarantor’s/Guarantors’ company/firm/unit and its
directors/partners/proprietors as defaulter in such manner and through such medium
as the Bank and/or Reserve Bank of India in their absolute discretion may deem fit.
26. The guarantor(s) hereby further agree(s) that in case demand / claim is made on
him/her/them by the Bank for repayment of the dues under the Facilities/ Limits and
the guarantor(s), despite having sufficient means, refuse(s)/neglect(s) in discharging
his/her/their obligation under this Agreement, he/she/they will be treated as a wilful
defaulter and Bank/RBI will have an unqualified right to declare the name of such
guarantor as wilful defaulter and to initiate further action as per Bank/RBI guidelines
or applicable law/statute, in respect of wilful defaulters.
27. The Guarantor(s) accept(s) and confirms(s that as a pre-condition, relating to grant of
the loans/advances/other non-fund based credit facilities to………….. *(name of the
borrower/s) and furnishing of guarantee in relation thereto, the *…………… Bank,
requires consent of the guarantor/s of the credit facility granted/to be granted, by the
Bank for disclosure of information and data relating to the guarantor/s, any credit
facility availed of by the guarantors, obligations assumed by the guarantors, in
relation thereto and default, if any, committed in discharge thereof.
Accordingly, the Guarantor(s) hereby give(s) consent for disclosure by the Bank of all
or any such:
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(a) Information and data relating to the Guarantor(s);
(b) The information or data relating to the Guarantor(s) obligations in any credit
facility granted/to be granted by the Bank and guaranteed by Guarantor(s)
under this Agreement; and
(c) Default, if any, committed by the Guarantor(s) in discharge of such

obligations,
as the Bank may deem appropriate and necessary, to disclose and furnish to
approved Credit Information Companies and any other agency authorized in this
behalf by Reserve Bank of India.
The Guarantor(s) declare(s) that the information and data furnished by the
Guarantor(s) to the Bank are true and correct.
The Guarantor(s) agree(s) that approved Credit Information Companies and any
other agency so authorized may use and process the said information and data
disclosed by the Bank in the manner as deemed fit by them; and furnish, for
consideration, the processed information and data or products thereof prepared by
them, to banks/financial institutions, etc. and other credit grantors or registered users,
as may be specified by Reserve Bank of India in this behalf.
* The expression ‘Bank’ includes lending institutions for the purpose.
28. The Guarantor(s) further agree(s) not to induct, on their part, a person, who has been
identified as Willful Defaulter by the Bank in terms of the directions/guidelines issued
by Reserve Bank of India or the guidelines framed by the Bank, as director on the
Board of the Directors of the Guarantor(s). If any person, who is a Willful Defaulter,
as hereby referred, is a director on the Board, the Guarantor(s) undertake(s) to get
him removed from the Board of the Directors. The Guarantor(s) also agree(s) to
make necessary amendments in the Articles of Association of the Guarantor(s) to
make the said requirement as a ground for removal of such directors and furnish a
copy of the Articles of Association as amended to the Bank. (Applicable in case of
corporate Guarantor/s)
29. That the Guarantor hereby gives specific consent to the Bank/ Lender for disclosing /
submitting the ‘financial information’ as defined in section 3(13) of the Insolvency and
Bankruptcy Code, 2016 (‘Code’ for brief) read with relevant Regulations / Rules
framed under the Code, as amended and in force from time to time in respect of the
guarantees given, securities created for securing the credit/ financial facilities availed
by the borrower from the Bank / Lender from time to time, to any ‘Information Utility’
(‘IU’ for brief) as defined in section 3(21) of the Code, in accordance with the relevant
Regulations framed under the Code, and directions issued by Reserve bank of India
to the banks from time to time and hereby specifically agree to promptly authenticate
the ‘financial information submitted by the Bank/ Lender as and when requested by
the concerned ‘IU’.
30. That the contents of the Agreement have been read over and translated
into________________vernacular language [name of the language of the
guarantor(s)] and the guarantor[s] having understood the contents thereof
subscribe(s) to these presents.
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SCHEDULE I
REPRESENTATIONS AND WARRANTIES OF THE GUARANTOR
1. Status
(a) Where the Guarantor is a company, it is duly incorporated under the

provisions of the Companies Act, 2013 and is validly existing under the laws
of India.
(b) Where the Guarantor is a limited liability partnership, it is duly incorporated

and registered under the provisions of the Limited Liability Partnership Act,
2008 and validly existing under the laws of India.
(c) Where the Guarantor is a partnership firm, it is duly incorporated and

registered under the provisions of the Indian Partnership Act, 1932 and validly
existing under the laws of India.
(d) The Guarantor has the power to own its assets and carry on its business as it
is being conducted.
(e) Where applicable, the Guarantor, is a natural person of sound mind and
eligible to enter into contracts in accordance with the provisions of the Indian
Contract Act, 1872.
(f) The Guarantor has the power to own its assets and carry on its business as it
is being conducted.
2. Binding obligations
(a) Where Guarantor is a corporate entity, sole proprietorship or a limited liability

partnership, the obligations expressed to be assumed by the Guarantor under
this Agreement are legal, valid, binding and enforceable.
(b) Where Guarantor is a partnership firm under the Indian Partnership Act, 1932,
the obligations expressed to be assumed by the Guarantor under this
Agreement constitute legal, valid and binding obligations of each partner of
the Guarantor, enforceable against each of the partners of the Guarantor in
accordance with its terms.
3. Non-conflict with other obligations
(a) The entry into and performance by the Guarantor of, and the transactions
contemplated by this Agreement, does not and will not conflict with:
(i) any applicable law;
(ii) its memorandum of association or the articles of association or its

registered partnership deed (as applicable); or
(iii) any agreement or instrument binding upon it or any of its assets.
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(b) No third party consent is required by the Guarantor for the entry into, or
performance of its obligations under this Agreement.
4. Power and authority
The Guarantor has the power and authority to enter into, perform and deliver, and
has taken all necessary action to authorise its entry into, and performance and
delivery, of this Agreement, and the transactions contemplated hereunder.
5. Validity and admissibility in evidence
All authorisations required or desirable:
(a) to enable the Guarantor to lawfully enter into, exercise its rights and comply
with its obligations in this Agreement;
(b) to make the this Agreement admissible in evidence in India; and
(c) for the Guarantor to carry on its business,
have been obtained or effected and are in full force and effect.
6. No filing or stamp taxes
Under law, other than payment of stamp duty which has already been made and is
evidenced on the face of this Agreement, it is not necessary that this Agreement be
filed, recorded or enrolled with any court or other authority or that any stamp,
registration, notarial or similar taxes or fees be paid on or in relation to this
Agreement or the transactions contemplated hereunder.
7. Taxes
(a) The Guarantor has paid all taxes required to be paid by it under applicable law
(except to the extent that such payment is being contested in good faith).
(b) The Guarantor is not required to make any deduction for or on account of tax
from any payment it may make under this Agreement other than as required
under the Income Tax Act, 1961.
8. No default
(a) No default is continuing or might reasonably be expected to result from the

entering into or performance by the Guarantor of or under this Agreement.
(b) No other event or circumstance is outstanding which constitutes an event of

default under any other agreement or instrument which is binding on the
Guarantor or to which the assets of the Guarantor are subject which might
have a material adverse effect on the condition (financial or otherwise), assets,
prospects, operations or business of the Guarantor, or on the ability of
Guarantor to perform and comply with its obligations under this Agreement, or
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on the validity, legality or enforceability of, or on the rights or remedies of the
Bank under this Agreement.
9. Compliance with applicable law
The Guarantor is in compliance with all, and has not breached any, applicable law
(including but not limited to any rule, regulation, circular, order, direction of the
Reserve Bank of India or the Securities and Exchange Board of India).
10. No misleading information
(a) Any factual information provided by or on behalf of the Guarantor in

connection with this Agreement, including the financial information and data
furnished to the Bank, was true, complete and accurate in all respects as at
the date it was provided or as at the date (if any) at which it is stated.
(b) Nothing has occurred or been omitted from the information so provided and no
information has been given or withheld that results in the information provided
by or on behalf of the Guarantor being untrue or misleading in any respect.
11. No proceedings pending
(a) No litigation, arbitration, investigative or administrative proceedings of or

before any court, arbitral body or agency (including any arising from or relating
to environmental law) have been started against (nor any notice in relation
thereto has been received by) the Guarantor, which, if adversely determined,
could reasonably be expected to have a material adverse effect on the
condition (financial or otherwise), assets, prospects, operations or business of
the Guarantor, or on the ability of Guarantor to perform and comply with its
obligations under this Agreement, or on the validity, legality or enforceability of,
or on the rights or remedies of the Bank under this Agreement.
(b) The Guarantor has not received any official notice from any governmental
authority with respect to a violation and/or failure to comply with any applicable
law or requiring them to take or omit any action.
12. No immunity
Neither the Guarantor nor any of the assets of the Guarantor is entitled to immunity
under applicable law from suit, execution, attachment or other legal process in India.
The entry into the this Agreement constitutes, and the exercise of the Guarantor’s
rights and performance of and compliance with Guarantor’s obligations under this
Agreement will constitute, private and commercial acts done and performed for
private and commercial purposes.
13. Assets and title
The Guarantor has good and marketable title to or is otherwise entitled to use, all
assets necessary or desirable for it to carry on its business as it is being or is
proposed to be conducted.
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14. Solvency
(a) The Guarantor is able to, and has not admitted its inability to, pay its debts as
they mature and has not suspended making payment on any of its debts.
(b) The Guarantor, by reason of actual or anticipated financial difficulties, has not
commenced, and does not intend to commence, negotiations with one or more
of its creditors with a view to rescheduling any of its indebtedness.
(c) The value of the assets of the Guarantor is more than its liabilities and it has
sufficient capital to carry on its business.
(d) No moratorium has been declared in respect of any indebtedness of the

Guarantor.
(e) No reference, inquiry, step or proceedings under the Reserve Bank of India
(Prudential Framework for Resolution of Stressed Assets) Directions 2019
dated June 7, 2019 has been made in relation to the Guarantor.
(f) Neither the Bank nor any other bank or financial institution has declared any
advance or investment in the Guarantor, respectively, a “non-performing asset
or investment” as defined under the relevant regulations of the Reserve Bank
of India.
(g) The Guarantor has not taken any corporate action and no other steps have
been taken or legal proceedings have been started nor has the Guarantor
received any notice for any legal proceedings against it for its winding-up,
dissolution, administration or reorganisation or for the appointment of a
receiver, administration, administrative receiver, trustee or similar officer of it or
of any or all of its assets or revenues.
(h) No application has been filed before the National Company Law Tribunal
seeking the commencement of an insolvency resolution process under the
Insolvency and Bankruptcy Code, 2016 in respect of the Guarantor.
15. Authorised signatories
Each person specified as an authorised signatory of the Guarantor in any documents

delivered to the Bank pursuant to this Agreement, is subject to any notice to the
contrary delivered to the Bank, authorised to sign all documents and notices on
behalf of the Guarantor.
16. Wilful defaulter
(a) Neither the Guarantor nor any of its respective directors have been identified
as a wilful defaulter by the RBI.
(b) No bank or financial institution has applied to the RBI to declare the Guarantor
as a willful defaulter.
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SCHEDULE II
CONVENANTS AND UNDERTAKINGS OF THE GUARANTOR
Part A – General Covenants
1. Authorisations
The Guarantor shall promptly:
(a) obtain, comply with and do all that is necessary to maintain in full force and
effect; and
(b) supply certified copies to the Bank of,
any authorisation required under any law or regulation to enable it to perform its
obligations under any this Agreement (including, without limitation, in connection with
any payment to be made thereunder) and to ensure the legality, validity, enforceability
or admissibility in evidence in its jurisdiction of incorporation of this Agreement or
otherwise required for carrying on its business.
2. Compliance with laws
The Guarantor shall comply in all respects with applicable law (including any rule,
regulation, circular, order, direction of the Reserve Bank of India or Securities and
Exchange Board of India to which it may be subject).
3. Disposals
The Guarantor shall not enter into a single transaction or a series of transactions
(whether related or not) to sell, lease, transfer or otherwise dispose of any substantial
part of its assets where such sale, lease, transfer or disposal might result in a
material adverse effect on the condition (financial or otherwise), assets, prospects,
operations or business of the Guarantor, or on the ability of Guarantor to perform and
comply with its obligations under this Agreement, or on the validity, legality or
enforceability of, or on the rights or remedies of the Bank under this Agreement.
4. Constitutional documents
Without the prior written consent of the Bank, the Guarantor shall not make any
amendment to its constitutional documents or its registered partnership deed (as
applicable) which could reasonably be expected to have a material adverse effect on
the condition (financial or otherwise), assets, prospects, operations or business of the
Guarantor, or on the ability of Guarantor to perform and comply with its obligations
under this Agreement, or on the validity, legality or enforceability of, or on the rights or
remedies of the Bank under this Agreement.
5. Arm’s length dealings
Without prejudice to the generality of its obligations under Paragraph 4 above, in the
event the Guarantor enters into any arrangement, agreement or commitment
(including any derivative transaction) with any person or pays any fees, commissions
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or other sums on any account whatsoever to any persons other than in the ordinary
course of trading, at arm’s length and on normal commercial terms, it shall make all
necessary disclosures and filings required to be made in relation thereto under
applicable law.
6. Taxes
(a) The Guarantor shall pay and discharge all taxes, rates, rents and
governmental charges upon the Guarantor and its respective assets before
penalties become attached thereto and shall establish adequate reserves for
the payment of any taxes, rates, rents and governmental charges becoming
due unless such taxes, rates, rent and governmental charges are being
contested in good faith by appropriate proceedings.
(b) The Guarantor shall make all filings required under applicable laws and
regulations (including, without limitation, the obligations to file regular tax
returns with any governmental authority).
7. Business
(a) The Guarantor shall conduct its business with due diligence and efficiency
and in accordance with sound engineering, technical, managerial and
financial standards and business practices with qualified and experienced
management personnel.
(b) The Guarantor shall not make any substantial change to the general nature of
its business, as the case may be, from that as actually carried on at the date
of this Agreement.
8. Wilful defaulter
If a director of the Guarantor is found to be a wilful defaulter, it shall ensure that such
person is removed from the directorship.
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Part B – Information Covenants
1. Financial Statements
The Guarantor shall, during currency of the Facilities and this guarantee supply to the
Bank, true and correct financial information including any material data relating to it,
which affects commercial decision of the Bank to give and or to continue the said
limits sanctioned or to be sanctioned to the Borrower.
2. Information: Miscellaneous
The Guarantor shall supply to the Bank:
(a) promptly, if it has notice of:
(i) any information, letter, communication or any other document of which

the Guarantor becomes aware or has knowledge of in relation to
initiation of a corporate insolvency process (by whatever name called)
by any person or any governmental authority or an application made or
proposed / threatened to be made by any person (including to any
governmental authority (including without limitation, the Reserve Bank
of India)) or by any governmental authority (including without limitation,
the Reserve Bank of India) in relation thereto; or
(ii) any suit, or proceeding which is wholly or partly of a non-monetary

nature that has been initiated against it which might, if adversely
determined, have a material adverse effect on the condition (financial
or otherwise), assets, prospects, operations or business of the
Guarantor, or on the ability of Guarantor to perform and comply with its
obligations under this Agreement, or on the validity, legality or
enforceability of, or on the rights or remedies of the Bank under this
Agreement; or
(iii) if a receiver is appointed in respect of any of its properties or business

or undertaking, information in respect thereof;
(b) promptly and in no event later than 3 (three) business days of the occurrence
of such event, the details (in writing) of any litigation, arbitration, investigative
or administrative proceedings or labour disputes against the Guarantor which
are current, pending or any notice in relation to which has been received by
the Borrower and which might, if adversely determined, have a material
adverse effect on the condition (financial or otherwise), assets, prospects,
operations or business of the Guarantor, or on the ability of Guarantor to
perform and comply with its obligations under this Agreement, or on the
validity, legality or enforceability of, or on the rights or remedies of the Bank
under this Agreement.;
(c) promptly, any information regarding proposed merger, amalgamation or

reconstruction of the Guarantor;
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(d) promptly, such further information regarding the financial condition, business
and operations of the Guarantor as the Bank may reasonably request;
(e) promptly, all information relating to any defects which may affect the interests,
rights and claims of the Bank adversely, or which might have caused the Bank
not to enter into this Agreement;
(f) promptly all relevant information regarding any change in the nature and
conduct of the business of the Guarantor, which could reasonably be
expected to result in a material adverse effect on the condition (financial or
otherwise), assets, prospects, operations or business of the Guarantor, or on
the ability of Guarantor to perform and comply with its obligations under this
Agreement, or on the validity, legality or enforceability of, or on the rights or
remedies of the Bank under this Agreement, prior to undertaking such a
change in business; and
(g) promptly, notice of any change in the authorised signatories, signed by one of
its directors or its company secretary or partner of the Guarantor (if
applicable), whose specimen signature has previously been provided to the
Bank, accompanied (where relevant) by a specimen signature of each new
signatory;
(h) promptly upon making any decision by the Guarantor to initiate an insolvency
process (by whatever name called) or any discussions by the board of
directors or partners of the Guarantor in relation to initiation of an insolvency
process (by whatever name called) of the Guarantor.
3. Notification of default
The Guarantor shall notify the Bank of any default in relation to or caused on account
of the Guarantor and any event or circumstance which constitutes an event of default
(howsoever described) under any other material agreement binding upon it (and in
each case, the steps, if any, being taken to remedy it) promptly (and in no event later
than 3 (three) business days of the occurrence of such event) upon becoming aware
of its occurrence.
4. Books, records and inspection
(a) The Guarantor shall keep proper books of account as required by applicable
law and the business of the Guarantor, as the case may be, and keep the said
books of account and all other books, registers and other documents relating
to the affairs of the Guarantor at its registered office.
(b) Upon the request of the Bank, the Guarantor shall provide the Bank and any
of its representatives, professional advisers and contractors with access to
and permit them to, at the cost of the Guarantor:
(i) enter any premises or property at all reasonable times;
(ii) examine, inspect and make copies of the books and records of the
Guarantor, as the case may be, in each case at reasonable times and
upon prior reasonable notice; and
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(iii) discuss the affairs, finances and accounts of the Guarantor with, and
be advised as to the same, by the relevant officers.
5. ‘Know Your Customer’ Checks
The Guarantor shall submit to the Bank all information required by the Bank to
complete all "know your customer" checks required by applicable law.
In witness whereof the Guarantor(s) and the Bank have set their hands hereunto at the place
and on the date as first hereinabove mentioned.
GUARANTOR/S
WITNESSES:
1._______________________
_______________________
_______________________
_______________________ FOR THE BANK
2.______________________
_______________________
_______________________
_______________________
PNB 58
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Page 69 of 77
FRAUD PREVENTION CHECKLIST TO BE KEPT WITH THE VEHICLE LOAN DOCUMENTS
Sr. No. Guidelines Yes/ No Reason for deviation, if any
Pre sanction Stage
1 Duly signed, completely filled loan Yes/ No
application form
2 KYC/ e-KYC Compliance
2.1 Self-attested passport size Yes/ No
photographs of the applicant(s) and
guarantor(s).
2.2 Identity of the Borrower /Guarantor Yes/ No
verified (wherever e-KYC is
applicable, it is used for customer
due diligence process) (wherever
PAN card is applicable same is
obtained else Form 60 is obtained)
2.3 Residence address of Borrowers Yes/ No
and Guarantors verified
2.4 Occupation and address of work Yes/ No
place verified
3 Pre-Sanction Inspection
3.1 Date of visit
3.2 Whether Pre-Sanction visit report Yes/ No
kept on record
3.3 Whether CIR extracted from CICs Yes/ No
4 Verification of ITR/ Form No. 16/
Salary Slips
4.1 Last 3 years, ITR of applicant(s) or Yes/ No
guarantor(s) obtained and verified
4.2 Form No. 16 / Salary Slip verified Yes/ No
from the employers
5 Verification of Banking
Relationship
5.1 Existing Loan Accounts of the Yes/ No
borrower with our Bank/ other
Banks examined
5.2 Statement of account(s) (6 months Yes/ No
for PNB account and 12 months for
other banks) obtained and
examined and nothing adverse
found
6 New car - proforma invoice duly Yes/ No
signed by the borrower obtained.
Old car – proforma invoice of Yes/ No
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Sr. No. Guidelines Yes/ No Reason for deviation, if any
current market price as well as new (if applicable)
vehicle so as to calculate
depreciation.
7 Old car – agreement to sell Yes/ No
between buyer and seller. (if applicable)
8 Whether car dealer credentials Yes/ No
verified independently e.g. by
searching Google, visiting car
manufacturer website, making
telephonic call to the car dealer,
personally visiting the car dealer
showroom etc.
Post sanction Stage
9 Disbursement of loan
9.1 Whether disbursement of loan is Yes/ No
made directly to the car dealer &
mode of payment.
9.2 Duly acknowledged receipt of the Yes/ No
payment made to car dealer is
received and kept on record.
10 Post Disbursement Verification:
10.1 Post disbursement inspection/ Yes/ No
asset verification
Date of verification of vehicle:
10.2 Whether following documents Yes/ No
obtained and kept on record:
-Bill invoice in joint name of
applicant and bank
Check type of vehicle, make and
model of vehicle.
-Joint registration certificate/
hypothecation certificate
-Branch must check the JRC/
Hypothecation by sending a
message <VAHAN> <space> <car
registration number> to
7738299899
-Insurance(Including third party
insurance) with Bank clause
-PNB 551
11 Recovery
11.1 PDCs/ SI/ NACH mandate has been Yes/ No
obtained
11.2 Irrevocable letter of authority Yes/ No
obtained wherever applicable
Page 71 of 77
This is only an illustrative checklist, not exhaustive. Branches to follow the guidelines issued from
time to time.
We confirm having verified the above information.
Place: _____________________________
SIGNATURE OF BANK’S OFFICIAL
Date: NAME :
DESIGNATION :
PNB 2018
Page 72 of 77
PRE-SANCTION VISIT REPORT
1 NAME OF THE APPLICANT Mr./Ms/Smt.

2 FATHER’S/HUSBAND’S Mr.
3 RESIDENTIAL ADDRESS WITH
BOUNDARIES
East: West:
North: South:
Identification landmark
4 DATE OF VISIT
5 RESIDENCE IS OWNED/ RENTED/ LEASED/
RESIDING WITH PARENTS OR RELATIVES
6 NAME, DESIGNATION AND CONTACT
DETAILS OF THE PERSON CONTACTED
EMPLOYMENT DETAILS
7.1 NAME OF EMPLOYER (IF SALARIED)
7.2 ADDRESS
7.3 DATE OF VISIT
7.4 NAME, DESIGNATION AND CONTACT
8.1 PLACE OF EMPLOYEMENT/ BUSINESS (IF
OTHER THAN SALARIED)
8.2 ADDRESS
8.3 DATE OF VISIT
8.4 NAME, DESIGNATION AND CONTACT

Place: _____________________________
SIGNATURE OF BANK’S OFFICIAL
Date: NAME :
DESIGNATION :
PNB 2019
Page 73 of 77
LETTER FROM BRANCH TO DEALER/ SUPPLIER
(MODE OF PAYMENT AND ACCOUNT DETAILS)
To,
M/s ___________________
_______________________
_______________________
(Name & Address of the Dealer/Supplier)
No. Date:
Dear Sir/Madam,
Ref: your proforma invoice no. ___________ dated __________ for supply of
_________________ (type of vehicle) to Shri/ Smt /
_______________________________ (applicant).
With reference to your proforma invoice no. _______ dated ________, for
_________________________ (type and make of vehicle) to be supplied/ delivered
to Shri/ Smt. _________________________.
Please inform us your preferred mode of payment i.e. through Demand Draft or
transfer to account maintained with Punjab National Bank or transfer to account
maintained with other bank through NEFT/ RTGS. If, payment is to be made through
transfer, please inform your account details in the attached format:
Yours faithfully,
Branch Manager
(To be filled in and returned to the Branch by the Dealer supplying the vehicle)
Preferred mode of Through Demand Draft or transfer to account maintained

payment (Please with Punjab National Bank or transfer to account maintained
tick the preferred with other bank through NEFT/ RTGS.
mode)
Account number:
IFSC Code:
Account name:
Address:
Name of the bank:
Address of the bank:
(Signature of the dealer)

Contact no.:______________
PNB 2020
Page 74 of 77
LETTER FROM BRANCH TO DEALER/ SUPPLIER
(REQUEST FOR DELIVERY CUM RECEIPT OF PAYMENT)
To,
M/s ___________________
_______________________
_______________________
(Name & Address of the Dealer/Supplier)
No. Date:
Dear Sir/Madam,
Ref: Your Performa invoice no. ___________ dated __________ for supply of
_____________________ (type and make of vehicle) to Shri/ Smt /
_______________________________ (applicant), hereinafter referred as borrower.
With reference to your performa invoice no. _______ dated ________, Shri/ Smt /
_______________________________ have been sanctioned by us a Vehicle Loan
for purchase of the vehicle.
2. We have delivered a Demand Draft of Rs. _________________ (amount in

figure) ______________________ (amount in words) in the name of
___________________ numbered ______________ dated __________.
OR
We have credited your account no. ______________________ with Rs.
____________ (amount in figure) _______________________________ (amount in
words) __________________________ (Name of The Bank),
_______________________ (Name of the Branch) through transfer/ NEFT/ RTGS
having Transaction/ UTR Number _____________________
on behalf of the borrower, being the cost of the said vehicle to be delivered to the
borrower.
3. The vehicle has to be registered jointly in the name of the applicant and
Punjab National Bank, ___________________________________ (Name and
complete address of the branch) under hire purchase/ lease/ hypothecation
agreement .
4. Please note that the amount is to be appropriated specifically towards the cost
of the said vehicle (Make ______________ Model ________________) only and
Bank will have the right to recall the amount if you fail to deliver the vehicle to the
above named person against his/her acknowledgement.
5. Please provide the following documents:

- Bill invoice
- Duly stamped receipt
- Joint registration certificate/ Registration certificate with certificate of hypothecation
-Insurance (including third party insurance) with bank clause
Yours faithfully,
Branch Manager
PNB 2021
Page 75 of 77
CLAIM FORMAT TO BE SUBMITTED BY THE CAR DEALER ON
FORTNIGHTLY/MONTHLY BASIS TO CIRCLE OFFICE/ZONAL OFFICE
Name of Car Dealer: _______________________
Dealer Code No. ____________
FY: ___________
Sr. Branch Customer Loan a/c Amount Date of Name of

No. Name Name No. of the (loan receipt of Car
customer amount) Payment dealer
(loan sales
amount) executive
Signature
(Car Dealer)
PNB 2022
Page 76 of 77
Appendix -II
Process flow for capturing Dealer detail
Menu CARDEALM, enter
On selection of function Add/Modify (as required), below screen appears
Enter all fields, select data from lookup searcher
On entering all details, press Submit
System gives message of successful insert and Unique Dealer Code is provided.
Page 77 of 77

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RETAIL ASSETS DIVISION; HEAD OFFICE

PLOT NO.4, SECTOR-10, DWARKA, NEW DELHI-110075

TO ALL OFFICES 27-04-2021

In supersession of RAD Circular

PNB CAR LOAN – CONSOLIDATED GUIDELINES

a. PNB Car Loan- ANNEXURE-A.

i. New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles

iv. Reimbursement of cost of New Car/Van/Jeep/Multi Utility Vehicle (MUV) or

1.a Scheme code: TLPVL

2.1 For private use: Individuals.

2.1.2 Business concerns (corporate or non-corporate). Company /Firm to be in cash

profit for the last two years.

2.1.3 For Reimbursement of cost of new cars:

2.2.1 Minimum net monthly salary / pension/ income – Rs 25000/-.

(Income of Parent(s)/Spouse/ Earning Children can be taken into account for

2.2.3 No minimum monthly income is required in cases where borrower agrees to

3.2 For Business Concerns (Corporate or Non-Corporate)

4.3 For old vehicles: 25% of the value of the vehicle.

5.3 For new/old car/van/jeep/ MUV/SUV: In case of persons engaged in

5.7 Permissible deduction

GMS/I Max. Permissible Deduction of GMS/I

5.8 Regularity of income:

However, deviation regarding availability of ITRs/ABSs may be permitted by

spurt in the salary/ income levels. Recommending/ sanctioning authority to

iii. In case of persons engaged in allied agricultural activities and

iv Illustrative charts indicating Equated Monthly Installment to cover repayment

It is advised that the prospective borrower be informed and provided the

v. No fresh/ additional Post Dated Cheques (PDC)/ Equated Monthly Installment

vi Cheques complying with CTS-2010 standard formats shall only be obtained in

Note: Detailed guidelines regarding National Automated Clearing (NACH)

Others CIC Score 700 RLLR+ RLLR+ RLLR+ RLLR+1.65%

For example, loan disbursed during 01.10.19 to 31.03.20 shall be reset on

Eligible Customers Relaxations

c) Conduct of the account is satisfactory. interest in the bracket “CIC Score

7. Pre-payment charges (Prepayment of the total outstanding):

7.2.3 If closure of loan is on the instance of the Bank on account of size of

9. Security: Vehicle purchased to be hypothecated to the bank. Name of the

marked/entered in the JRC / Smart Card issued by the Transport Authorities,

10. Guarantee/ Collateral Security:

10.2 No guarantee required for permanent employees of Central Govt./ State

may waive the guarantee / collateral security on merits of each case.

Loan for old car/van/jeep/MUV/SUV to be allowed by In-charges of

The cases where PNB Score is above 40 & up to 50 can be considered by

*Next Higher authority in case of:-

a) Branch Sanction – AGM RAM/iRAM

Note: Vehicle Loans sanctioned to Business concerns, i.e., Companies, Partnership

Branch - Car purchased having invoice date up to 1 Month (Within vested

12. Disbursement to be done as under:

a. Through Demand Draft. (DD): Disbursement through DD to be permitted by

RAM/iRAM in case Loan sanctioned by Branch

No. PNB 2020 (Enclosed).

12.4 In order to ensure that the disbursement of vehicle loans is made

13. Security inspection:

13.3 However, the requirement of first verification of vehicle will continue to be

14. Under tie-up arrangement with PSUs, corporates, institutions or in case

guarantee acceptable to bank.

14.5 Assured repayments would imply obtention of:

Note: In case of salaried class borrower: Requirement of PNB 1134 may be

Designation Since: .

Total Annual Income (Rs.)* Gross Net: ____.

Total Annual Income (Rs.)* Gross: . Net.

*Sl. No. Date:____