CONFIDENTIAL

Memo: 16/10/2023

Property guidelines – Business Banking Group

1. Residential property
• Acceptable
• Used as commercial acceptable subject to, property in mixed usage zone as per master plan
• Residential Properties used as transit accommodation for employees/clients of the borrower and
Residential properties provided by employer on lease to their employees
2. Commercial Property – Acceptable
• Minimum area for considering commercial properties as collateral – 100 sft Builtup area
3. Industrial Property
• All properties whether located in government industrial estate or private industrial estate or at
independent location are acceptable subject to property being mortgageable
• For industrial property only value of land and building to be considered as per approved plan/
permissible FSI.
• For West Bengal: In case where the industrial property offered as collateral is built over
agricultural land, it shall be acceptable and valuation shall be released in line with below
conditions:
◦ Property to be located well within the Industrial Estate
◦ Usage of the said property to be industrial
◦ Industrial property to be in existence for minimum 10 years
◦ Valuations to be considered basis lower of the guideline rate and market rate
4. Vacant Land – Residential / Commercial
(With fencing and clearly demarcated)/Properties with temporary structures)
• Acceptable, subject to the following:
◦ Property to be located in approved colonies or in locations approved by town planning/ master
plan/ equivalent authorities for residential or commercial purposes
◦ Conversion order from appropriate authority
◦ Clear demarcation of land should be there
◦ Maximum 10,000 sq. ft. (to be highlighted as NFA if exceeds)
◦ Such land/plot shall be accepted in addition to residential/commercial property and shall
contribute less than or equal to 50% of total collateral value required under such programs (NFA
available at one level higher authority maximum upto RH-BC & RH or CAAM whichever is
higher)
◦ Minimum area for considering properties as collateral for Residential - 800 sft land area

Properties where land layout is not available from development authority

If Layout plan from development authority / Other government authorities is not available for vacant
lands in Tamil Nadu, Kerala, Madhya Pradesh & Andhra Pradesh, following additional norms need to
be followed:

For Tamil Nadu:

• Layout abutting Government Road
• Developed surrounding - Residential / Commercial Area
• Approved Layout or Layout / Plot in existence for 20 years (size and shape of the Plot / Land not
changed in the past 20 yrs)
• Revenue document is required to ascertain nature of land as non agricultural land
• NOC from local body is required for ascertaining that the land is not coming under land acquisition
by any govt body as and when required by technical team

For Kerala:
• Layout abutting Government Road
• Developed surrounding - Residential / Commercial Area
• Within Municipal / Corporation / Grade 1 Panchayat limits

For Madhya Pradesh:

• Land should be identifiable
• Land should be non agricultural land
• Area in which land is lying should be fairly occupied
• Developed Surrounding – Residential/ commercial area.
• Layout abutting Govt Road

For Andhra Pradesh:

• Layout abutting Government Road
• Developed surrounding-Residential/Commercial Area
• Land use as per revenue records should be either residential or commercial land
• Revenue document is required to ascertain non-agricultural land. Non-agricultural land
conversion order from appropriate authorities is mandatory.
• Same shall be clearly demarcated by fencing or boundary wall and identifiable
• Linear dimensions are mandatory for the submitted documents (Revenue Sketch with linear
dimensions for the subject along with village survey map are mandatory in case dimensions are
not available in the submitted documents
5. Gram Panchayat
Common parameters
• Surrounding area to be well developed and property to be marketable
• Basic infrastructure to be in place
• Age of property to be more than 5 years (where approved building plan is not available)
• Valuation of building to be limited to area as per permissible norms in the byelaws
• Revenue record/ electricity bill /tax receipt to be made available where approved sanction plan is
not available
• Documents for establishing identity of property (Survey sketch/Village map/Khasra map/Patwari
Map etc., ) as applicable to be provided wherever property is not identifiable
• Land use as per conversion order to be for the specific use only. Master plan in applicable locations
to support the same. Revenue records can be acceptable in the absence of master plan
• In case linear dimensions and property boundaries are not available in provided document,
certificate from competent authority mentioning linear dimensions and property boundaries to be
provided
Residential: Upto G+2 independent house
(1) Land conversion for residential to be available
(2) Approach road to be of minimum10 feet
Residential: Apartment
(1) Endorsement from DTCP / Equivalent Government authority
(2) Approach road to be 20 feet
(3) Undivided share of land should be mentioned in the sale deed

Additional Norms for specific regions:

Funding Gram Panchayat approved apartment without DTCP/equivalent approval can be considered
for following regions with funding restricted to approved units as per sanctioned plan
• Gujarat (Morbi location) - Funding limited to units located upto G+2 floors
• Andhra Pradesh - Project to be constructed in Max Land extent of 300 sqm with not more than 8
units
• Kerala
o Layout approval and building approvals/ OC available from Panchayat Secretary for multi unit
projects upto 75 units and height upto 15m
o For projects above 3000sft, construction recommendation from LSGD (Local self Government
department) to be provided
Commercial –
Following properties with approval from competent authority are acceptable
a. Shop/Retail units
b. Commercial shops are in GF/1st floor and the upper level is used as residential

Funding gram panchayat properties without DTCP/ equivalent approval can be considered provided
(1) Entire land along with complete structure is mortgaged
(2) Surrounding developments to be of mixed zone
(3) Funding limited to structure with maximum G+2 and not to exceed 4 units
Industrial
Funding gram panchayat properties without DTCP/ equivalent approval can be considered provided

(1) Clearance from pollution control board wherever applicable

(2) Plan from Inspector of factories wherever applicable. In case the same is not available, secondary
documents as acceptable to MVG can be considered
(3) Property to have access through public road of minimum 30 feet width
(4) Property is functional & occupied
(5) All applicable NOC’s to be in place
(6) For the purpose of funding, Valuation of the property to be considered as below:
◦ Land value + RCC/ Metal structure: Land value + 100% structure value
◦ Land value + Temporary structure: Only land value
◦ Any other type of structure: only land value to be released
Warehouse - Funding gram panchayat properties without DTCP/ equivalent approval can be
considered provided
(1) Property to have access through public road of minimum 30 feet width
(2) All applicable NOC’s to be in place
Marriage garden / Convention Centre - Funding gram panchayat properties without DTCP/ equivalent
approval can be considered provided
(1) Property to have access through public road of minimum 30 feet width
6. 100% covered properties
All the following norms to be compiled for 100% covered properties:
• Without any construction on balconies- value of land and approved structure to be considered
• With construction on balconies- value of land and approved structure on ground floor only to be
considered
7. Property under expansion
• Acceptable. However, valuation of only the completed and habitable portion to be released.
• These should be occupied properties where atleast ground floor is fully constructed and is being
taken up for further expansion.
• However, No NFA is available for apartments under expansion. This will be applicable only for
independent properties.
8. Properties without sanctioned plan or constructed with deviation from approved plan
• Valuation will be released for the approved/ regularized portion of the property where sanctioned
plan/ building regularization from competent authority is available
• In absence of sanctioned plan, building value to be restricted to permissible or at site FSI as per DCR
 Norms (whichever is least) for properties complying following conditions
o Age of property is more than 5 years
o For commercial properties, location shall be as per master plan, same shall be confirmed by
MVG in valuation report.
o Municipal tax receipt/equivalent authority receipt in the name of present owner
o Further where sanction plan is not required as per local authority / law same shall not be
considered as negative property.
o Applicability of the sanction plan shall be confirmed by the MVG technical manager and such
properties would be outside the purview of this negative list.
o Property should not be on water body
o No encroachment on property
o Property should be located in area with proper infrastructure
o Proper conversion letter should be in place – Proof of conversion as Non Agri
o Property usage should be as per master plan
o MVG team confirmation on age and locality should be taken into consideration
• Further where sanction plan is not required as per local authority / law same shall be acceptable
property.

Note: If the property is less than 5 years and no sanctioned plan available, only land value to be
considered.
9. Ownership
Property being provided as collateral security to be owned by the applicant, promoters or immediate
family members.

In case of male promoter, collateral security owned by: Parents, wife, son, Unmarried daughter,
daughter – in – law, brother, brother's wife, brother’s son shall be acceptable.

In case of female promoter, collateral security owned by Husband, Father in law / Mother in law, son,
daughter – in – law, husband’s brother, Husband’s brother's wife shall be acceptable.

Following can be considered as immediate family members with non- financial authorization with
sanctioning authority as per CAAM:
• In case of male promoter - father's brother, father's brother son, father's brother's wife, father's
brother's son’s wife, Grandson, Grandson's wife, father's brother grandson, father's brother
grandson's wife, grandparents
• It is advised that same non-financial authorization to be preferably considered in case of joint
family or having joint business interest

In case of partnership firms and companies, properties owned by sister concerns can be accepted,
however common partners/directors should have 50% ownership in both the entities. Properties owned
by entities in which relatives of above partner/ directors (son, spouse, daughter in laws, parents,
brother and brother’s spouse) having 50% or above ownership are also acceptable
Any other NFA related to ownership can be allowed as per CAAM. However, Cases with STP tagging
under PD model(Unicore) can be approved digitally as STP with mitigant
10. Norms for accepting Mandi properties as collateral security (NFA available at one level
higher authority maximum upto RH-BC & RH or approving authority as per CAAM whichever
is higher)
Before accepting any mandi property; a joint visit shall be conducted by business and credit team and
basis the indicative norms defined as below, individual Mandi shall form part of approved list. Once
the Mandi is approved, shops under such Mandi shall be acceptable as collateral security. Details of
such mandi to be shared by credit team with Central Product & Policy team which will be consolidated
& made available for future references on policy site.
Indicative norms to be checked during mandi visits are:
• Number of shops in such mandi
• Record maintenance
• Occupancy
• Comment on Operation level in mandi
• Demand & Supply of properties in Mandi
• Feedback back about the mandi from at least two customers
Certain additional norms as defined below also shall be adhered to, while accepting shops under
approved list of mandi’s as security:
1. Mandi have more than or equal to 50 registered shops with minimum occupancy of 75%.
2. Lease deed should not have any restriction on further sale or mortgage of lease rights on properties
and an NOC for creation of mortgage on the shop to be obtained from the APMC office.
3. Minimum residual lease period of such mandi properties should be 10 years and there should be no
lease payment dues at the time sanction
4. For accepting Standalone Mandi property under BBG, Minimum collateral cover shall be100% or as
defined under the program whichever is higher.
5. Mandi property should be self-occupied by borrower/family members of the borrower. Ground floor
properties & multi-storey properties along with ground floor can be accepted
11. Norms for acceptance of property in the name of unregistered partnership firm (NFA
available as per CAAM)
The properties in the name of unregistered partnership firm can be accepted as collateral provided:
• Continuation of main partners for 3 years (a min of 51% shareholding) certified by Tax
auditor/practicing CA, verifying the current partners and their respective shareholding, will be
required at the time of application.
All the partners to sign the facility and transaction documents. However, Cases with STP tagging under
PD model(Unicore) can be approved digitally as STP with mitigant
12. Other region specific norms
a. For Kerala - Classification of accepting residential property constructed on wet land to be
offered as collateral:
• Residential property with minimum 15 years of age.
• Property should be constructed on minimum 50% of land area
• Property should be located within Municipal Corporation/ Development Authority Area
• Surroundings should not be used for agriculture purpose
Advocate confirmation that SARFAESI can be initiated on property offered as collateral

b. For Residential Properties located in Ludhiana used for commercial/ industrial

Residential properties used for commercial/ industrial purposed in Ludhiana (Punjab) may be accepted
subject to following conditions:
• Such industry should be non-polluting.
• Tax Receipt for commercial/ industrial uses should be available.
It should be self-owned and self-occupied property. (ownership norms as defined).

c. Requirement of Mandal surveyors sketch for identifying properties which have only khasra
number as address in Andhra Pradesh and Telangana
Non-financial authorization as per CAAM for built up properties subject to compliance of following
conditions:
• Age of built up property =>3 years
• In lieu of sanction plan another address proof to be submitted
• Declaration to be obtained from license surveyor
• Undertaking to be obtained from customer stating that the property belongs to him and he is
pledging it with the bank
d. Norms for accepting Gram Natham residential properties in Tamil Nadu: (No NFA)
• Apartment/Flats/Commercial properties shall not be considered for funding
• Funding can be done for Individual buildings (settlement properties) within family
For all such cases following needs to be checked –
o Classification as kudiyuruppu natham
o Minimum 13 year property ownership
o NOC from Tahsildar to be collected
o Ryotwari /mundwar

e. Rajasthan (except Jaipur) – 100% covered properties

In residential properties where construction is done beyond boundaries, valuation to be released
as:
• Building valuation to be limited as per FSI norms
• LTV as applicable (in the respective program/variant) for residential property to be considered.
The above norms shall be restricted to such colonies and locations where construction beyond
boundaries is the common practice
13. Valuation of collateral security
• Fixed deposits/Kisan vikas patra/NSC certificates: Face value
• Life insurance policies: Surrender value
• Residential/commercial/industrial properties: Property valuation to be done MVG.
14. Charge on property
Exclusive charge on property taken as collateral can be created by way of Equitable/Registered
mortgage.
15. Norms for Funding Specialized Properties under Super-biz variant
Types of Properties to be funded:-
• Nursing homes (upto 20 Beds). For Doctors only upto 30 beds. (NFA of upto 50 beds at Head CPG
level). NFA for greater than 50 beds can be taken with approval of Head –Business Credit and
Credit Policy and Product Head – Business Banking
• Marriage gardens with constructed area covering atleast 20% of land portion)
• Hotels, provided the hotel is having positive PAT in the last 2 audited financials/ Credit manager to
document average occupancy along with hotel ratings as reflected on various sites like
makemytrip, booking.com etc. in the CAM (Hotels with positive cash profit (PAT + Depreciation)
with minimum CIBIL score of 725 (CMR 1 to 7) in the last audited financials can be approved by
ZH-BC and ZH
NFA on above norms is with Head- Business Credit and Officials such as City Business Head / State
Head / Zonal Head from Leadership team reporting to Business Head –Retail & Business banking

Special profiles A & B can be funded under specialized properties only with approval of ZH-BC and ZH

Additional Norms:
• The properties should be managed and operated by the borrower. Leased / rented / vacant
properties will not be funded. NFA for leased/rented out properties is at ZH-BC when NOC from
tenant is documented
• LTV for construction cost to be considered shall be limited to 100% of the land value on the upper
side. NFA for construction cost can be taken at ZH-BC and ZH level
• Funding to School can be done subject to fulfillment of following additional conditions (No NFA
allowed, except to the extent explicitly provided):
o Entities to be funded are Registered Societies, Registered Trusts, and Private / Public Limited
companies
o LTV to be 50% across BBG irrespective of program (No NFA allowed)
o Borrowing clause should be part of Trust Deed / Society bye laws/ Incorporation document
 o School should be a Primary & Secondary schools upto 12th Standard.
o Minimum student strength of 1000 students.
o Vintage of 10 years of at least one of the educational institution under the trust / society
/Company (NFA at ZH-BC & ZH)
o Funding can be done to existing ICICI bank Fees Management Solution (FMS) customers
only.
o Fees to be routed through nominated fees collection account and repayment of the loan to
be taken from the same. Process for review and monitoring the same to be laid down by the
product team prior to roll out of the said product.
o Bank statement of last 12 months. Inflows in the same should corroborate with the topline
as reflected in the latest audited financials.
o Any subsequent addition / change in the above guidelines can be jointly approved by
officials of Product, Policy and CRMG group of Leadership Team with recommendation of
Business, Credit and MVG teams
Any deviations from the specific guidelines for funding of specialized properties can be taken at
the level of Head Business Credit and Officials such as City Business Head / State Head / Zonal
Head from Leadership team reporting to Business Head –Retail & Business banking other than
wherever the deviation is specifically mentioned. Funding specialized properties to caution
profiles requires approval from ZH-BC and ZH.
16. Valuation Norms
• Validity of technical report is 180 days
• For fresh/enhancement cases:
o Residential/Commercial property: Single valuation to be done, where property value is less
than 500.0 million, beyond which two valuations by MVG/ MVG approved valuer would be
required (as amended from time to time in CRP)
o Other than Residential or Commercial property
 Where the property value is less than ₹ 100.0 million for Mumbai MMR and Delhi
NCR
 Where the property value less than ₹ 70.0 million for Pune, Ahmedabad, Surat,
Indore, Bangalore, Chennai, Hyderabad, Kolkata, Chandigarh else
 Where the property value is upto ₹ 50.0 million for other cities
Beyond above limit, two valuations by MVG/ MVG approved valuer would be required
(as amended from time to time in CRP)
• Government promoted Industrial Estates were predefined price range are approved by MVG,
Following are the revised norms:
o One valuation to be done by MVG approved valuer
o Second valuation report to be waived off, if the market value of the property lies within
the prescribed price range for the industrial park (as per uploaded document on policy site
- Government promoted Industrial Estate list)
• Cases without any incremental exposure & meeting following norms index based valuation will
be applicable:
o All cases of Business Banking for borrowers that are ETR/ GTR or borrowers rated F1 to
F5 under Infinity & Marvel programs with exposure upto ` 50.0 million
o Index based valuation will be carried out on a half-yearly basis by MVG, in case there is a
downward trend of more than 10% in the valuations for two such valuations/ cumulative
downward trend of more than 10% from the base year (currently 2019), then individual
valuations of the properties will have to be carried out of all the properties in that pin code
in the next 6 months. Cumulative Trend from the base year (currently 2019) in 2 periods
 would be considered
o Physical visit would be carried out on a sample basis by MVG for the properties where
Index Based Valuation is carried out. Sampling methodology and percentage would be
mentioned in the process note
• For cases not covered under Index Based Valuation, revaluation to be done once in a three years
• For all plain renewal/reduction cases only one valuation from MVG/ MVG approved valuer would
be required.
• All the above valuation reports should be validated by MVG Employee
• Wherever two valuations are done, lower of the two technical valuations would be considered
17. General Guidelines
• For renewal case, fresh NFA would not be required. However, for incremental exposure (fresh
and/or enhancement), Fresh NFA if any is required to be taken except under simplified
enhancement - Saral Vriddhi proposal. Also, in case of enhancement cases - revaluation of
existing mortgaged property shall not be required to be redone in case the old value has been
used for calculation of security cover and same was previously approved by MVG
• In case any property which is rented or will be rented in future, condition for right to get the rents
assigned to be in favor of the bank and should have property vacation clause of 3 month. Said
condition needs to be part of post sanction document executed by the borrower
• In case of properties which are cross collaterised, valuation as per Cross collaterisation PAC
12245 as amended from time to time may be adhered to.
• Property guidelines as amended from time to time will supersede property related program norms
except for collateral cover and adherence to property guidelines.
• In cases where valuations are released by MVG team (with or without observations/mitigants),
no NFA shall be required by the business/credit team for processing the case further except
specifically mentioned in the Policy
• Fresh NFA is not required for any enhancement or renewal case where status quo of property
is maintained as that during earlier sanction (with NFA)
• Indemnity from customer for non-availability of DA/DTCP layout to be mandatory for all cases
(wherever applicable)
• In case property becomes structurally unsafe due to demolition in an approved portion, only land
value can be released in such cases at the discretion of MVG.
• Any amendment in the property guidelines may be done by the approval of Head - Business Credit
& Credit Policy - Business Banking and the respective Product Head of Business Banking who
have signed the memo
• Any amendment for addition/modification in category A & B may be done by the approval from
Policy team (AGM and above) and MVG team (AGM and above)
• Any property/scenario which is not specifically mentioned above, mail clearance to be obtained
from Zonal Head-MVG and Zonal Head- Business
• Market Practice Note:
o Guidelines specific to a location based on common practice prevailing in the region can be
approved by Head – Business Credit, Officials such as City Business Head / State Head / Zonal
Head from Leadership team reporting to Business Head –Retail & Business banking /Product
Head (Leadership team) and Head – MVG.
o However, all norms detailed in property guidelines needs to be adhered & same shall supersede
market practice note.
o All notes to be uploaded on policy portal
18. Category A (NFA available at one level higher authority maximum upto RH-BC & RH or
approving authority as per CAAM whichever is higher)
• Properties under construction (other than cases where: property has been offered as primary
security for term loan subject to positive visit and confirmation by ICICI official)
• Where construction complete more than equal to 85% can be approved by sanctioning authority
 and cases where PD model is with STP tagging under UNICORE variant can be approved digitally
as STP with mitigant
• Properties belonging to HUFs
• Industrial Land
• Schools/Hospitals/Hotel
• Guest house other than owned by company and used by its employees
• Cinema halls
• Petrol pumps
• Vacant industrial property
• Rented industrial property
• Cold storage properties
• Hostel Property
• Office/shops forming part of mall structure
• Properties under IT park/SEZ
• Commercial Complex having more than 3 rented or leased shops.
• Multi Tenanted Residential Property with more than 3 tenants in one single property. Where PD
model is with STP tagging under UNICORE variant can be approved digitally as STP with mitigant
• Properties given on lease to any large corporate, Multi National Retail Outlets, Financial institution
(like Banks/insurance companies/Mutual funds, etc.)
• Property without original title deeds / transferred by way of Gift Deed / Will etc (however, where
property is transferred through registered gift deed with proper stamp duty paid will not form
part of negative property and this will be ensured at the time of sanction). Where PD model is
with STP tagging under UNICORE variant can be approved digitally as STP with mitigant
• Commercial floor plate where ownership of built up space is mentioned as undivided share and
demarcation not available in the document
• Amalgamated property where part property is coming as collateral and the structure is not
overlapping. Applicable to residential, commercial and Industrial properties
• Godown: Where storage is the inherent feature of business like traders and companies into
logistics business shall not be part of caution property
19. Category B - (No NFA allowed at any level)
• Properties in respect of which land acquisition by government is initiated/pending/announced
based on available information
• Properties located outside India
• Chawl/Gaothan/Pagdi
• Stone crushers
• Old age homes and Orphanage
• Lal dora properties
• Title deeds pending with registrar
• Properties with religious monuments / constructions
• Grama Natham properties (except in Tamil Nadu)
• Hazardous industries (list to be define in OG of respective program)
• Land locked properties
• Properties on buffer zone
• Forest land – Reserve forest area
• Properties belonging to Minors and Public Charitable trust without proper required permission
• Properties in Hilly terrain, Flood prone/ water logged, Mining areas, Quarries, Wet Agri land
properties without proper approvals, etc.
• Agricultural land / Farmhouse / Farmland
• Industrial/Commercial/Residential property built on agri land
• Amalgamated property where part property is coming as collateral and the structure is
overlapping