Home Equity-TCFSL-Consolidated Final Policy

TAT
Tata Capital TATA Capital Financial Services Limited

FinancialCapitale
Services Ltd.
Home Equity policy Guidance note
Date: 16th March, 2017
Credit Policy
Home Equity Loans
CONFIDENTIAL 1
TAT
FinancialCapitale
Services Ltd.
Contents
1. Product Summary:- ........................................................................................................................................ 5
1.1 Product Description :- .................................................................................................................................. 5
1.1 a. Product Positioning ................................................................................................................................. 5
1.1 b. End use of Loan ........................................................................................................................................ 6
1.2. Rates & Charges .......................................................................................................................................... 8
1.2 a. Home Equity Product Offering:- ............................................................................................................... 8
1.3 Product Policy Overview .............................................................................................................................. 9
1.4 Income Assessment Methods : .................................................................................................................. 11
1.5 Documentation:- .................................................................................................................................. 12
All documents must be self attested by the applicant. ................................................................................... 12
Original Seen and Verified:- ............................................................................................................................. 12
• While collecting the copies of All Required Documents the Originals of those Documents have to be
seen by the CPA Executive/TCFSL credit. ......................................................................................................... 12
1.5 a. Additional documentation where a Private Limited Company is a borrower and owner of the
property: .......................................................................................................................................................... 16
.1.6 Policy Parameters:- ................................................................................................................................... 17
1.6 a. Lending Limits:- ...................................................................................................................................... 31
1.7 Income calculation / Product Amendments ............................................................................................. 32
a) Based on Financials:- ................................................................................................................................ 32
1.8 Non Residential Premises (NRP) purchase programme ....................................................................... 34
1.9 Introduction of Banking Product .......................................................................................................... 34
1.10 Funding against Rent Receivables :-......................................................................................................... 36
PDD Trigger ...................................................................................................................................................... 39
ESCROW A/c to be opened 60 days from the date of disbursement. ............................................................. 39
PDD pendency for greater than 60 days not to exceed 10% of the total LRD portfolio from date of roll out of
the policy.norms .............................................................................................................................................. 39
1.11 Gross Receipts Program for Self Employed Professionals:- ..................................................................... 39
2
1.12 Alternate Collateral Funding:- .................................................................................................................. 40
1.13 EDI Program:- ........................................................................................................................................... 42
1.14 : Pre Qualified top up to existing customers ............................................................................................ 44
CONFIDENTIAL 2
TAT
FinancialCapitale
Services Ltd.
1.15 :CA based assessment Program……………………………………………………………………………………………….……….…46

1.16 : Home Equity Maximiser Program……………………………………………………………………………………………….….…47
1.17 Income and Ownership Pattern: .............................................................................................................. 48
1.18 Approved list of Institutions: ................................................................................................................... 49
1.19 Other Parameters:- .................................................................................................................................. 50
1.20 Caution and Negative Profiles .................................................................................................................. 50
1.21 Credit Checks: The Credit checks required are enlisted as follows: ........................................................ 51
1.22 Credit Verification Process: ...................................................................................................................... 53
Personal discussion: ......................................................................................................................................... 53
Property Visitation Guidelines: ........................................................................................................................ 54
1.23 Broad Guideline on Technical Valuations: _ ............................................................................................ 55
1.23 Applicant/Collateral Outside GEO Limit: _ ……………………………………………………………………………………….55
Circular no 422: Guidance note on Original Verification (OSV) of customer documents:............................... 56

Negative Properties: ........................................................................................................................................ 57
1.23 a Property Valuation Report will contain the following :- ...................................................................... 57
1.23 b Broad Guidelines on Legal Appraisa :-……………………………………………………………………………………………..58
1.24 Deviation Approving Authorities.............................................................................................................. 58

1.25 RAAC Norms (Risk Assessment and Acceptance Criteria):....................................................................... 59
1.26 RCU and FI Deviation Matrix .................................................................................................................... 59
i. Negative report on RCU ................................................................................................................... 59
ii. Reasons for negative field verification ............................................................................................. 60
iii. Office Field Verification .................................................................................................................... 61
iv. Tele-verification (TVR)...................................................................................................................... 61
1.27. Dedupe Policy: ........................................................................................................................................ 62
1.27 a CIBIL Deviation Matrix ........................................................................................................................... 62
1.27 b. External Dedupe – (FI dedupe) ............................................................................................................ 63
3 1.27 c. Internal Dedupe (TMF / TCFSL database) ............................................................................................. 64

1.28 Verifications: ............................................................................................................................................ 65
1.29 DEVIATIONS: To be addendum to the Policy and as amended from time to time. ................................. 66
1.30. Portfolio Mix:- ......................................................................................................................................... 72
CONFIDENTIAL 3
TAT
FinancialCapitale
Services Ltd.
i. Deviation mix:- ................................................................................................................................. 72

ii. Programme Mix................................................................................................................................ 73
Property Type Mix ............................................................................................................................................ 73
1.31 Post Approval Review .............................................................................................................................. 73
Credit Triggers:- ........................................................................................................................................ 73
Annexure 1- ...................................................................................................................................................... 74
a) Pre Sanction documents for Balance Transfer ................................................................................. 74
b) Pre disbursal documents for Balance Transfer ................................................................................ 74
c) Post disbursal documents for Balance Transfer:- ............................................................................ 75
Annexure 2-Format for End use undertaking from the customer : ................................................................. 75
Annexure 3-Industry Margins for Gross Margin product :............................................................................... 76
CONFIDENTIAL 4
TAT
FinancialCapitale
Services Ltd.
1. Product Summary:-
The organized mortgage market in India is about 30 years old. The first private HFC was HDFC Ltd promoted by World
Bank, ICICI Ltd and Aga Khan Foundation in Year 1977.
In the years to follow, most of the nationalized banks and other leading Public Sector Financial Institutions like LIC, GIC
etc. also entered the Home Loan market.
Last few years (since Yr 1999) has seen a lot of private banks, MNC banks and other institutions entering the mortgage
market leading the CAGR to about 42%. The growth in the said business is one of the highest among all the other
sectors.
Most of the mortgage lenders are traditionally First Mortgage lenders on Equitable Mortgage by way of deposition of Title
deeds.
The Indian Mortgage market can be categorized in the following segments
 Private sector banks

 HFCs
 Nationalized / Public sector banks
 MNC banks & NBFCs
Mortgage market is in the real growth phase now and almost all the lenders especially Private sector banks, MNC banks
& NBFCs are moving their focus in this segment. In the Home Equity market, margins are much higher than Home Loan,
comparatively lower competition and high market potential. The market operates on a higher interest rates depending
upon borrowers profile, quality of asset, ticket size, etc.
1.1 Product Description :-

Home Equity loans are secured term loans for any declared legal purpose. This loan amount is determined on the ability
to repay and the property value. The loan amount and tenor vary as per the product and are mentioned in each section
separately.
1.1 a. Product Positioning

The basic target market for Home Equity product is the business and salaried segment.
The eligible segment is Resident Indians or Entities incorporated in India as follows
 Salaried
 Self employed professionals
 Self employed non professionals operating under either of category
 Proprietorship firms
 Partnership firms
 Private limited companies
5  Unlisted and closely held public limited companies
 TATA Ecosystem
CONFIDENTIAL 5
TAT
FinancialCapitale
Services Ltd.
1.1 b. End use of Loan

The customer is required to read and sign a specific declaration stating the purpose for which the loan is being availed
incorporated in the application form. The credit manager further validates this during the credit review with the customer.
 Personal needs
 Business needs
 Renovation of property
 Investments
 Asset acquisition
 Consolidation of debt
 Mortgage buyout
 Refinance on self financed property
Note: Loan cannot be used for any speculative or illegal purpose
End use monitoring
We obtain an undertaking to ascertain the end use of funds from the customers for all cases at the time of approval.
Apart from obtaining undertaking from the customers, we need to additionally monitor the end use & the monitoring
mechanism is as under:
 End use monitoring would be done for fresh HE cases > 3-crs and where cash out is > 2-crs (for BT+ Top
up cases) + for existing customers whenever top up is given.
 Such monitoring should be conducted within 3-months of the cash out loan disbursement.
 Should be conducted by empanelled CA agency or Location Credit Manager.
 Report should be prepared in the below format.
Following points are recommended to be adhered to:
1. Yearly Property Inspection to be carried out by TCFSL Credit Manager & report (in format enclosed below) to be
submitted. The report should include observations on following points:
a) Whether the Property is Self-occupied or Rented or occupied by Relatives of the Borrower?

b) In case Property is occupied by Relatives – Relationship with the Borrower
c) Whether the Property is properly maintained?
d) Whether the Property is used for Residential Purpose or for Commercial Purpose?
2. Borrowers must be contacted personally by Credit Manager to find out:
a) Whether he is continuing with the same Employment / Business / Profession or he has changed his Job / Business /
Profession? In case of change, Reasons forthe same should be enquired into & Details such as Name, Address,
Telephone Nos, etc of the New Job / Business / Profession should be obtained
b) Whether there is any change in place of his working or place where he was carrying on his Business / Profession. In
case of change, Reasons for the same have to be enquired into & Details such as Address, Phone No, etc. to be
obtained
6
c) If the Property is Rented, Reasons for giving the same on Rent to be enquired into If Credit Manager observes any
factor which is likely to affect Value of the Property or any adverse turn in the business situation of the applicant which is
likely to affect applicant’s repayment capacity, the same must be reported to the Business Head. Business Head jointly
with Risk must take steps to mitigate risk, if reported.
CONFIDENTIAL 6
TAT
FinancialCapitale
Services Ltd.
End Use Monitoring Report : Home Equity
Customer & business details :

Name of Customer & Firm
Nature of business
Years of business existence
Business set-up situated at
Loan details :
Loan amount sanctioned & disbursed
Tenor
Rate of Interest
Date of disbursement
Collateral
Stated end usage of loan
Special conditions
End use monitoring :

Date of visit
Place visited
For what purpose funds have been deployed?
On-site verifications done?
7 Documents, Bills, etc verified which support the end use of funds?
CONFIDENTIAL 7
TAT
FinancialCapitale
Services Ltd.
Comments :
Name of CA Agency/ Credit Manager :
Signature
1.2. Rates & Charges

The loan rates & charges will be advised to the customer at the time of applying the loan. Loans will be on adjustable
interest rate basis. These loans interest rate may be revised at the company’s discretion. The rates may be different for
different borrower categories or for different programs.
All repricing decision will be informed to the borrower. The loan documentation must contain appropriate clause to
ensure the bank’s ability to reprice and the borrower’s agreement to be the same.
1.2 a. Home Equity Product Offering:-

Home Equity Product Offering:-
 Residential
 Commercial Retail
 Rent Securitization
 Alternate Collateral: Residential Plot, Industrial Properties, Hotel up to 30 Rooms & Hospitals/ Nursing Homes.
 Educational institutes (only Schools up to 12th standard).
Policy is defined with certain pre login norms to be followed:
1. Applicant should be among the approved borrower entities based on the approved borrower entity defined.
2. Each applicant should meet pre-sanction documentation norms
3. Each applicant should meet credit norms for the approved borrower entity as applicable.
4. All income documents, Identity proofs and bank statement need to be signed by the applicant / co- applicant
before submission. The same should be counter verified by DSA or authorized person.
5. Applicant should sign all documents (income, identity) including app form and photograph with identical
signature as on processing fees chq.
6. Fees chq should be from the bank a/c where customer wants to pay the EMI from. (Salary or main business
bank a/c as applicable)
8
Please Note:
Files with deviations & beyond individual credit authority limit shall move to the respective levels for sign-off, as per
authority delegated in writing and deviation authority delegation time to time before approving the loan.
CONFIDENTIAL 8
TAT
FinancialCapitale
Services Ltd.
1.3 Product Policy Overview

Home Equity Loan is a loan availed by an individual/partnership firm/corporate by way of a definite amount being allotted
for a pre-defined period. The loan is close ended & secured installment loans.
A. Collateral: All loans will be fully secured by way of residential/retail commercial/ EDI/ additional properties as
collateral . At least one property being offered for mortgage should be occupied by at least one of the applicant
whose income is considered for the loan . The other one can be vacant or rented.
B. Age Criteria:
MINIMUM AGE MAXIMUM AGE WORK EXPEREINCE
Applicant: Minimum Age to be 25 Salaried :Maximum Age to be Salaried : 3 years of employment

years. capped at 65 years or age of
retirement whichever is less
Co-applicant: Minimum age has to be
18 years Self Employed: Maximum age at the Self Employed: Minimum 3 years of
maturity of the loan should be 65 continuous business operations and
Collateral owner/s age also needs to
years. In case of family run business, 5 years for Non Individual Entity.
be a minimum of 18 years
65 years age may be for any of the
co applicants deriving income from
the same business
Non-Income considered co-applicant upto any age can be considered; if he was a property owner, NOC from
legal heirs was required. However waiving off the requirement of NOC from legal heirs (not applicant/co-
applicant to the loan) is subject to LTV basis property value pertaining to share of legal heirs who are
applicant/co-applicant in the loan, meeting the policy norms For eg : A Father (property owner & exceeding
age norms) has four legal heirs, and only three out of them are applicant/co-applicants in the Loan. If the
property value corresponding to share of the three legal heirs who are app/co-app in the loan meets the LTV
norms, NOC from the fourth legal heir who is not a loan app/co-applicant would not be required.
C. Contractibility Criteria Landline / WLL / Post paid mobile are required at residence and / office. For direct
customer contact ability, one phone at either place is mandatory. Bills for any one of the last 3-months are
required with no arrears in the same.
D. Co applicant :Loans will have co applicants
Individual – immediate family members staying in the same residence. Son in law / brother in law staying in the same
residence may also be taken if engaged in the same business.
Corporate – all partners / directors need to be a part of the loan structure for income consideration. NOC is to be
collected from partners / directors not in the loan structure.
9 Sisters, daughters and aunts cannot be accepted as co applicants.
E. Guarantors:
Guarantors will be taken where co applicants cannot be provided. The guarantor should have an independent source of
income with loan servicing ability equivalent to that of a borrower who would meet the criteria without any deviation.
Guarantor should meet all the credit parameters and KYC norms.
CONFIDENTIAL 9
TAT
FinancialCapitale
Services Ltd.
F. Negative/ Caution Profile:

Based on industry feedback, certain professions / profiles are considered restricted. Lending to these profiles is done
extremely cautiously and is based on past credit history and with prior permission from Risk Head or designees.
Restricted Profiles include: politicians, press, police, prosecutors, property dealers, bar/liquor shop owner, etc (detailed
list provided in the Credit Verification Process segment)
G. Debt Burden Ratio (DBR):

It is defined as the EMI of the current mortgage loan + all other monthly loan & credit obligations of the customer divided
by the monthly assessed income (of all applicants). The DBR slabs would be applicable as per the Income considered
for computing loan eligibility instead of ITR value
All the loans with EMIs outstanding greater than 9-months be considered in DBR calculations. However following loans
with EMIs outstanding greater than 6-months would be considered in DBR calculations.
1. Channel Finance/ Inventory funding availed by Automobile dealers, Consumer Durable dealers, etc
2 Demo Vehicle loans availed by Automobile dealers
3. CEQ loans availed by Construction firms, Contractors, etc
4. Auto/ Truck loans availed by Transporters
H. Equated Monthly Instalment (EMI):

It is a fixed amount which a customer repays on a monthly basis so that his loan is completely repaid in the given tenor.
EMI covers both interest and principal amount. EMI that can be offered to the customer has to be in line with the
maximum DBR norms.
If the applicant during the personal discussion mentions that he can afford to pay a lower EMI as compared to the
maximum permissible DBR norms, then the EMI has to be capped to that amount.
I. Loan to Value (LTV):

It is defined as loan amount divided by the property value (market value as reported by an empanelled valuer). The LTV
norms are different for different product categories and the same is enumerated in each section.
J. Repayments:
Repayment of loan will be made through Post Dated Cheques (PDCs) or Electronic Clearing Services (ECS)/ Auto Debit.
OR DAS (Deduction against salary). Thirty-six PDCs to be collected for the initial EMI amount for the first 3 years of the
loan in case applicant wishes to service the EMI though PDC mode. Replenishment activity of PDCs to commence 6
months prior to PDC exhaustion. 3 SPDCs and Security PDC to be collected with ECS instructions.
One Principal outstanding cheque (referred to as Security PDC) also to be collected.
K. Credit Shield Insurance
10 We provide Credit Shield Insurance cover (accidental & natural death) to our Home Equity customers through Tata
AIG/Aviva Life Insurance. The customers have to pay one-time premium at reduced rates which vary from 1.7% of the
loan amount to 2.4% of the Loan amount. It is expected that Credit Shield insurance penetration would go upto 30-35%
with the build-in option. Addition of insurance coverage amount to the loan amount is approved by credit manager level
subject to below mentioned conditions:
CONFIDENTIAL 10
TAT
FinancialCapitale
Services Ltd.
 If the LTV for the loan after addition of insurance is within policy norms then it can be approved at the level of
respective credit Manager.
 If due to addition of insurance, the LTV gets increased beyond the prescribed limit applicable for commercial or
Residential properties or alternate properties as applicable at the proposal level, this would require sign off from
the original approving authority. In case, the original approving authority happens to be Risk in the approval
earlier, the call could be taken at the RCM’s level.
 The increase in LTV should be restricted to 3% of the original loan amount.
 In any other case addition of insurance coverage amount to the loan amount is approved by the approving
authority which had originally approved the deal.
 DBR norms would remain the same as stated in the Policy
1.4 Income Assessment Methods:

 Business Income: Profit after tax as reflected in the Income tax returns and Profit and Loss statement. If the
tax has not been subtracted in the profit figures then tax needs to be subtracted as reflected in the ITR. If there
is more than 50% increase in PAT over last year then it needs to be averaged out.
 Depreciation: 100% of the depreciation as claimed in the P&L can be considered for income purpose.
However, if the latest FY Depreciation figure is greater than previous FY figure by > 50%, 100% of the averages
of two FYs Depreciation figure to be considered:
 Agricultural income: Agricultural income should reflect in the Income tax returns for at least 2 years. Average
of the same over three years is considered for income calculation. If the income is unusually high then proof of
agricultural receipts as issued by the local governing body can be requested for.
 Salary: Income as reflected in Net Salary reflected in salary slips
 Rental Income: Rental Income can be considered if it reflects in Income tax returns / Bank statement/ Rental
agreements. For all cases rental contact point verification is mandatory. If rental income reflects in ITR and bank
statement then 100% rental can be considered, but if only rent agreements exist without corroboration in ITR
and Bank statements then only 50% rental can be considered.
 Interest Add back: In case of buy over of a Home Equity loan from another institution then the interest paid to
the bank in that financial year can be added back if it reflects as a expense in P&L. Certificate of interest paid in
that financial year is mandatory from the bank. Bank statement reflecting the interest entries for a year can be
accepted as an alternate document. Similarly, any loans which are duly obligated or closed after latest audited
financial year but whose interest expenses are debited in latest financial statement under review – same can be
added back.
 Other Income: Interest income, dividend income, income from investment and income from part time business
like tuitions etc can be added if reflected consistently in the Income tax returns for at least two years. Proof of
investment can be requested and verified as applicable. .
 Income’s which cannot be considered: Incomes from speculative business, capital gains .
11
 Surrogate Income Program SIP: Currently this program is discontinued.
.
CONFIDENTIAL 11
TAT
FinancialCapitale
Services Ltd.
1.5 Documentation:-
All documents must be self attested by the applicant.
Original Seen and Verified:-

• While collecting the copies of All Required Documents the Originals of those Documents have to be seen by the
CPA Executive/TCFSL credit.
• All the copies of these documents have to be signed as Original Seen and Verified by the CPA
Executive/TCFSL credit
Requirement for SENP under his

Requirement for Individual Name/ Co-borrower for
Documents Requirement for SEP
SALARIED proposed HE loan in the
company name
Duly completed application Duly completed application

Duly completed application form
form signed by all form signed by all
signed by all applicants.
applicants. applicants.
Latest passport Latest passport

Latest passport photographs of all
Application photographs of all photographs of all
applicants
form with applicants applicants
photograph
Any corrections / Any corrections /
overwriting on the overwriting on the Any corrections / overwriting on the
application form are to be application form are to be application form are to be
countersigned by countersigned by countersigned by applicants.
applicants. applicants.
Passport Passport Passport
Driving license Driving license Driving license
Life Insurance Policy Life Insurance Policy Life Insurance Policy

Age proof
Birth Certificate Birth Certificate Birth Certificate
School leaving certificate School leaving certificate School leaving certificate
PAN Card PAN Card PAN Card
Photo ID Proof ID proof in the form of ID proof in the form of ID proof in the form of Passport,
Passport, Driving license, Passport, Driving license, Driving license, PAN, Bankers
PAN, Bankers certificate PAN, Bankers certificate certificate .
Partnership deed
12 Partnership deed copy /
Proof of
Not Applicable MOA / article of association
existence MOA & Articles of association/Form
if applicable.
32
CONFIDENTIAL 12
TAT
FinancialCapitale
Services Ltd.
Landline / WLL / Post paid Landline / WLL / Post paid

mobile are required at mobile are required at Landline / WLL / Post paid mobile
residence and / office. For residence and / office. For are required at residence and /
direct customer contact direct customer contact office. For direct customer contact
Contact ability ability, one phone at either ability, one phone at either ability, one phone at either place is
place is mandatory. Bills for place is mandatory. Bills for mandatory. Bills for the last 3
the last 3 months are the last 3 months are months are required with no arrears
required with no arrears in required with no arrears in in the same.
the same. the same.
Latest list of directors and

Ownership shareholding pattern certified by
Not Applicable Not Applicable
pattern company secretary and business
proof
Must be on the letterhead of the

company and should have details
like- detailed nature of business
activity, No of years in business,
Product/services, distribution,
suppliers, clients, infrastructure, no
Business of employees, market, branches if
Not Applicable Not Applicable any, group company if any, assets,
profile
future business plans. Ownership
/equity stake – in case of promoter
directors.
The deviation to waive-off the same

would be at RCM
(and above)
Utility bill-telephone bill,

Utility bill-telephone bill, electricity
electricity bill (maximum 3
bill (maximum 3 months old)
months old)
Office address
Not Applicable
proof Shop & establishment act
Shop & establishment act certificate
certificate
Sales tax certificate Sales tax certificate
Residence proof required Residence proof required in

in form of Utility Bill, form of Utility Bill, Bankers Residence proof required in form of
Residence Bankers certificate, Bank certificate, Bank statements, Utility Bill, , Bankers certificate, Bank
Address Proof statements, Property Property registration statements, Property registration
registration documents, documents, Property tax documents, Property tax receipt,
Property tax receipt, receipt,
13 Sales Tax/Excise/VAT, Shop

Sales Tax/Excise/VAT, license, , Property registration
Office address
Employee ID card Shop license, , Property papers, Property tax receipt, Bank
Proof
registration papers, statements, Trade license,
Property tax receipt, Bank Professional license
CONFIDENTIAL 13
TAT
FinancialCapitale
Services Ltd.
statements, Trade license,

Professional license
Last two months’ salary

Latest two ITR’s, both
slip or 2 years of Form 16 . Latest two ITR’s, both personal and
personal and business
Income proof business along with computation of
along with computation of
Appointment letter/ income.
income.
increment letter
All income documents All income documents All income documents need to be
need to be signed by the need to be signed by the signed by the applicant/co
applicant/co applicant. applicant/co applicant. applicant.
Form 16 of financial year (-

2), if application is made
pre July in financial year
(0). Or Form 16 of financial
year (-1), if application is
made post July in financial
year (0). Eg: Incase
Form 16 application is received post Not Applicable Not Applicable
July 2008 we need the
Form 16 for Financial year
2007-2008. In case the
application is received Pre
July 2008 we would need
Form16 for the financial
year 2006-2007
Bank statement
/Pass book Bank statement required for 6
Bank statement required Bank statement required for
copy for months
for 6 months. Required 6 months. Required from
applicants
from salary a/c .The bank operating a/c .The bank
whose income Required from operating a/c .The
account should be account should be minimum
is being bank account should be minimum
minimum one year old one year old
considered for one year old
eligibility.
The photocopy of front

The photocopy of front page
page mentioning name of
mentioning name of account Photocopies of updated bank
account holders, account
The first page holders, account no, bank statements for the last six months-
no, bank name and branch
of bank name and branch is to be from the current a/c / savings a/c of
is to be obtained. (Not
statement need obtained. (Not required for the individual applicants and co-
required for computerized
to be signed by computerized statement applicant.
statement having above
the having above details).
details).
14 applicant/co
applicant
Bank statement for six # Max. Number of outward # Max. Number of outward cheque
months reflecting three cheque returns not more returns not more than 6 over last 6
salary credits for applicants than 6 over last 6 months. months.
whose income is being
CONFIDENTIAL 14
TAT
FinancialCapitale
Services Ltd.
considered. (From salary

a/c)
# Only 2-stop payment # Only 2-stop payment # Only 2-stop payment charges
charges entries acceptable charges entries acceptable entries acceptable over last 6
over last 6 months over last 6 months months
If existing loan is repaid If existing loan is repaid

through bank statements or through bank statements or If existing loan is repaid through
if loans are declared on if loans are declared on bank statements or if loans are
application form or cibil, application form or Cibil, declared on application form or cibil,
Existing Loan then these loans will be then these loans will be then these loans will be considered
considered for DBR if considered for DBR if for DBR if closure statement or less
closure statement or less closure statement or less than 6 months balance term proof is
than 6 months balance than 6 months balance term not given
term proof is not given proof is not given
Repayment Mandatory for 12 months Mandatory for 12 months Mandatory for 12 months
Track Record
is required
from the
lending finance Loan closure statement Loan closure statement
Loan closure statement must for
company OR must for loans matured must for loans matured
loans matured within last 6 months
EMI’s reflected within last 6 months within last 6 months
through bank
statements
Proof of
continuity of
business/
employment
Not Applicable Same as Income Proof Not Applicable
for last 3 years
or 1 year
contract
renewal
Processing fee cheque

from salary a/c / other Processing fee cheque from Processing fee cheque from
operating a/c (for cash operating a/c operating a/c
salary)
If PF is given by demand If PF is given by demand

If PF is given by demand draft, then
Signature draft, then signature draft, then signature
signature verification required (one
verification verification required (one of verification required (one of
of the following)
the following) the following)
15 - Banker’s verification - Banker’s verification - Banker’s verification
- Passport copy - Passport copy - Passport copy
- PAN card - PAN card - PAN card
CONFIDENTIAL 15
TAT
FinancialCapitale
Services Ltd.
- Driving license - Driving license - Driving license
Signature in PF cheque/ Signature in PF cheque/

Signature in PF cheque/ PDC’s must
PDCs must match with the PDC’s must match with the
match with the signature on
signature on application signature on application
application form.
form. form.
FI &Tele-
Reports of physical verification & Tele-check at office and/or residence for all applicants are to be
verification
done as specified by Policy
reports
Loan documentation set -1. Loan agreement must be completely filled in. 2.Loan agreement must
be correctly stamped. 3. The agreement must be signed by all applicants (Loan documentation
cannot be marked as PDD)
Pre-Disbursal
documentation Technical Appraisal Report - As required by technical manual
Property documents - Legal opinion from an empanelled lawyer certifying a clear & marketable
title to the property
Indemnity, compliance of credit conditions
1.5 a. Additional documentation where a Private Limited Company is a

borrower and owner of the property:
Document Requirement
Loan agreement
Loan documentation
set
Customer Declaration
Memorandum of entry Mortgage of property by Memorandum of Entry or as mandated by Legal from time to time.
Board resolution authorizing the company to mortgage the property, borrow and repay the
Board Resolutions
EMI’s.
Form 8 & 13 (In case

Filing of Form 8 & 13 with the ROC in order to register the charge, post disbursement.
the property is
acquired by a
ROC search to be done for all cases by legal department
Company)
NOC when Limited

NOC would be required from the Bankers/other secured lenders for the Loan to be taken
company is the co-
from TCFSL. The NOC would be required to be taken as a Pre-disbursal document.
16 owner of the property
CONFIDENTIAL 16
TAT
FinancialCapitale
Services Ltd.
1.6 Policy Parameters:-
Non - Individual HE loan

Parameters Salaried SEP SENP ( Individual)
in the company name
Considered for Considered for Considered for

Not applicable
Eligibility Eligibility Eligibility
*Minimum 25 yrs at *Minimum 25 yrs at *Minimum 25 yrs at

Not applicable
loan origination loan origination loan origination
*Maximum 65 yrs or
age of retirement, *Maximum 65 yrs at * Maximum 65 yrs at
Not applicable
whichever is less at loan maturity loan maturity
Age of loan maturity
Borrower
Not considered for Not considered for Not considered for
Not applicable
eligibility eligibility eligibility
*Minimum 18 yrs at *Minimum 18 yrs at *Minimum 18 yrs at

Not applicable
loan origination loan origination loan origination
*Maximum 70yrs at *Maximum 70yrs at *Maximum 70yrs at

application at the application at the application at the Not applicable
time of loan maturity time of loan maturity time of loan maturity
*All owners to be borrowers/co-borrowers and related customers who income is clubbed should be
a co borrower
*No minor to be borrower
*Max of 4 co borrowers Maximum 5 co-borrower
Co Borrowers
Co-borrower to be obtained
(Co-borrowers can be spouse, parent or brother or son; income of from
co-borrower can be considered for eligibility)
All partners
(As per Ownership Income Grid -)
51% of Shareholder
17 No of
Not to exceed 5 Not applicable
dependents
Geographical Property to be located within geographical limits. Applicant must be staying within geographical
Limits limits
CONFIDENTIAL 17
TAT
FinancialCapitale
Services Ltd.
 No Min Balance charges in the last 6 months. No inward Cheque Bounces in last 6
months.
Min. 5 credit and 5 Min. 5 credit and 5
Salary credits Min 25 credit and 25 debit
debit transactions debit transactions
(minimum 3) transaction per month
per month. per month.
Recurring debits on Recurring debits on Recurring debits on

account of loan account of loan account of loan Recurring debits on account
repayment if loan repayment if loan repayment if loan of loan repayment if loan
repayments are repayments are repayments are repayments are available
available available available
Avg. Balance of Avg. Balance of

Last 6 months bank
bank account to EMI bank account to EMI
Bank Analysis account statement to be
should be >=1 for 6 should be >=1 for 6
obtained and analyzed
months months
At least 40% of previous

Average bank year’s turnover should
balance >= 1 times depict in 6 months current
In case of CC In case of CC
of the proposed EMI banking. Avg. Balance of
limit/OD limit( limit/OD limit(
for 6 months bank account to EMI should
Proprietors), the Proprietors), the
be >=3 for 6 months.
average monthly average monthly
credit should be >= credit should be >=
In case of CC/OD limit the
2 times of EMI 2 times of EMI
average monthly credit
should be >= 4 times of EMI
for 6 months
Signature Required for all Required for all Required for all
Mandatory
Verification borrowers borrowers borrowers
Applicant/Co- Applicant/Co- Applicant/Co-

Applicant not to be Applicant not to be Applicant not to be
Applicant/Co-Applicant not
from negative profile from negative profile from negative profile
to be from negative profile
list. Caution profile list. Caution profile list. Caution profile
Negative list. Caution profile can be
can be funded based can be funded can be funded
Profile funded based on additional
on additional based on additional based on additional
mitigants as specified in the
mitigants as mitigants as mitigants as
policy
specified in the specified in the specified in the
policy policy policy
# Property not to be # Property not to be # Property not to be

# Property not to be located
located in negative located in negative located in negative
in negative area
area area area
Negative
Areas
# Customer’s # Customer’s # Customer’s
18 # Customer’s residence not
residence not to be residence not to be residence not to be
to be in negative area.
in negative area. in negative area. in negative area.
Validity of 30 days from the 30 days from the 30 days from the 30 days from the date of
approvals date of sanction date of sanction date of sanction sanction
CONFIDENTIAL 18
TAT
FinancialCapitale
Services Ltd.
Re-credit, if Re-credit, if
customer makes customer makes
disbursement disbursement
request after 2 request after 2 Re-credit, if customer
months from months from makes disbursement
Re-credit, if sanction letter date, sanction letter date, request after 2 months from
customer makes For re-credit, the For re-credit, the sanction letter date, For re-
disbursement following documents following documents credit, the following
request after 2 are necessary – are necessary – documents are necessary –
months from
sanction letter date, Re-credit would be Re-credit would be Re-credit would be
For re-credit, the required to be done. required to be done. required to be done. In case
following documents In case where the In case where the where the latest ITRs and
are necessary Latest latest ITRs and B/S latest ITRs and B/S B/S & P&L Account have
salary slip and latest & P&L Account & P&L Account not been taken, the same
bank statements have not been have not been would have to be taken
taken, the same taken, the same along with the latest Bank
would have to be would have to be Statements.
taken along with the taken along with the
latest Bank latest Bank
Statements. Statements.
Loans against Loans against Loans against

property for property for property for
education, business, education, business, education, business,
marriage, purchase, marriage, purchase, marriage, purchase, Business and working
improvement of improvement of improvement of capital purpose only
property, medical property, medical property, medical
treatment and other treatment and other treatment and other
Purpose personal needs personal needs personal needs
Only those HFCs Only those HFCs Only those HFCs

approved by NHB for approved by NHB approved by NHB Only those HFCs approved
refinance will be for refinance will be for refinance will be by NHB for refinance will be
eligible for the eligible for the eligible for the eligible for the balance
balance transfer balance transfer balance transfer transfer loan.
loan. loan. loan.
Commercial Commercial Commercial Commercial Property :

Property : 55% Property : 55% Property : 55% 55% allowed under Normal
allowed under allowed under allowed under Income and Gross Margin
Loan to Value
Normal Income and Normal Income and Normal Income and for loan value up to Rs 5
Ratio
Gross Margin for Gross Margin for Gross Margin for Crs*
*For detailed loan value up to Rs loan value up to Rs loan value up to Rs
LTV under 5 Crs* 5 Crs* 5 Crs* Residential Property :
different 65% allowed for loans upto
Residential Residential Residential Rs 5 crs* and Gross Margin
19 program, pls
Property :65% Property : 65% Property : 65% under Normal Income
refer Annexure
allowed for loans allowed for loans allowed for loans
no
upto Rs 5 crs* and upto Rs 5 crs* and upto Rs 5 crs* and *The Applicable LTV for
Gross Margin under Gross Margin under Gross Margin under cases>500 Lacs is currently
Normal Income Normal Income Normal Income capped at 5% less than the
allowed at below 500 lacs.
CONFIDENTIAL 19
TAT
FinancialCapitale
Services Ltd.
*The Applicable LTV *The Applicable LTV

*The Applicable LTV for cases>500 Lacs for cases>500 Lacs **LTV on alternate
for cases>500 Lacs is currently capped is currently capped residential and commercial
is currently capped at 5% less than the at 5% less than the (Rented /Vacant) property
at 5% less than the allowed at below allowed at below is capped at 5% less than
allowed at below 500 500 lacs. 500 lacs. allowed at self occupied
lacs. properties.
**LTV on alternate **LTV on alternate
**LTV on alternate residential and residential and
residential and commercial (Rented commercial (Rented
commercial (Rented /Vacant) property is /Vacant) property is
/Vacant) property is capped at 5% less capped at 5% less
capped at 5% less than allowed at self than allowed at self
than allowed at self occupied properties. occupied properties
occupied properties.
Property Value: Property Value: Property Value: Property Value:
Minimum value of Minimum value of Minimum value of Minimum value of property:

property: Rs.10/- property: Rs.10/- property: Rs.10/- Rs.10/- lacs across all
lacs across all cities. lacs across all cities. lacs across all cities. cities.
Valuation: Valuation: Valuation: Valuation:
Value of the Value of the

Value of the property property will be property will be
Value of the property will be
will be lower of the 2 lower of the 2 lower of the 2
lower of the 2 technical
technical valuations technical valuations technical valuations
valuations recommended
empanelled engineer recommended by recommended by
by the empanelled engineer
taking into account the empanelled the empanelled
taking into account the
the market value and engineer taking into engineer taking into
market value and value as
value as per the account the market account the market
per the reckoner issued by
reckoner issued by value and value as value and value as
the office of the sub-
the office of the sub- per the reckoner per the reckoner
registrar
registrar issued by the office issued by the office
of the sub-registrar of the sub-registrar
The empanelled The empanelled The empanelled

The empanelled engineer to
engineer to submit a engineer to submit a engineer to submit a
submit a report on the
report on the current report on the current report on the current
current value, residual age
value, residual age value, residual age value, residual age
and occupant of the
and occupant of the and occupant of the and occupant of the
property.
property. property. property.
One of the technical One of the technical One of the technical

agencies will submit agencies will submit agencies will submit One of the technical
20 the attested the attested the attested agencies will submit the
photograph for the photograph for the photograph for the attested photograph for the
site as mandated in site as mandated in site as mandated in site as mandated in the
the technical the technical the technical technical appraisal report.
appraisal report. appraisal report. appraisal report.
CONFIDENTIAL 20
TAT
FinancialCapitale
Services Ltd.
The companies are Professionals based

classified into CAT on Individual Proprietorship firms
A, B, C based on Income tax returns. Proprietors,
Listing in BSE/ NSE, ( Professionals Partners, Directors Partnership firms
Company Min Share Price, include doctors, CA, of Private Ltd.
Categorization Years In existence, Engineers).Proof of based on their Private limited companies
Minimum Turnover, professional individual Income
Minimum Net-worth, qualifications and tax returns Unlisted and closely held
Net Profits and registration to be public limited companies
Shareholding obtained
Minimum 1 year in
Minimum
Current Employment
Employment/ Minimum 3 years Minimum 3 years in Minimum 5 years in the
for all salaried, total
Business stability in practice the current business current business
experience of 3
stability
years.
Min 1 year for rented Min 1 year for Min 1 year for
residence rented residence rented residence
For parental /self - For parental /self - For parental /self -

Minimum Minimum 2 years of
owned House in owned House in owned House in
Residence operation from same
same city stability same city stability same city stability
stability premises(factory/office)
can be less than 1 can be less than 1 can be less than 1
year. Ownership year. Ownership year. Ownership
Proof to be Proof to be Proof to be
documented. documented. documented.
Rs. 2.50 lakhs gross

total income p.a. Rs. 3.00 lakhs gross total
Rs. 2.50 lakhs gross after tax as declared income p.a. after tax as
total income p.a. in ITR. declared in ITR.
after tax as declared
in ITR. . Firm to be Firm to be profitable for last
profitable for last 2 3 years.
years.
Minimum
Income Levels • Net-worth of the firm to be
as per income positive.
documents for Rs 20,000 Net
the main Salary for all cites • Net-worth of the Interest Leverage ratio
applicant for firm to be positive. (PBDIT / Interest paid) to be
Income based greater than equal to 2 for
programs. all cases. Debt/ Equity to be
less than 3.
21 For all incomes and For all incomes and

income methods if income methods if
For all incomes and income
there is an increase there is an increase
methods if there is an
of over 50% from of over 50% from
increase of over 50% from
the the
the
CONFIDENTIAL 21
TAT
FinancialCapitale
Services Ltd.
Previous year then Previous year then Previous year then

averaging needs to averaging needs to averaging needs to be done
be done be done
Clubbing of co Clubbing of co Clubbing of co

borrower income :- borrower income :- borrower income :-
Income of Co- Income of Co- Clubbing of co borrower

Income of Co-
Borrower to be Borrower to be income :-
Borrower to be
regular in nature and regular in nature regular in nature
Income of Co-Borrower to
should be and should be and should be
be regular in nature and
documented by bank documented by documented by
should be documented by
statement, salary bank statement, bank statement,
bank statement, salary slip /
slip / ITR .and salary slip / ITR .and salary slip / ITR. and
ITR. and should meet all
should meet all should meet all should meet all
policy parameters same as
policy parameters policy parameters policy parameters
that of the
same as that of the same as that of the same as that of the
borrowers.(Maximum 5 ).
borrowers borrowers. borrowers.
and a minimum gross total
(maximum 3). And a (maximum 3) and a (maximum 3 and a
income norms of Rs.1.00
minimum net salary minimum gross total minimum gross total
lakh as per ITR after tax
Rs.10,000. income norms of income norms of
Rs.1.00 lakh as per Rs.1.00 lakh as per
ITR after tax ITR after tax.
Surrogate Currently SIP Currently SIP

Currently SIP Program is
Income Not applicable Program is Program is
discontinued
Program SIP discontinued. discontinued
Annual Income
Currently SIP Currently SIP
calculation Currently SIP Program is
Not applicable Program is Program is
under discontinued
discontinued. discontinued
Surrogate
Income
Program
Not applicable
22
CONFIDENTIAL 22
TAT
FinancialCapitale
Services Ltd.
This program This program

enables assessment enables assessment
of income and of income and This program enables
assessment of income and
Repayment capacity Repayment capacity
of the customer. of the customer. Repayment capacity of the
This assessment is This assessment is customer. This assessment
done by an done by an is done by an empanelled
empanelled empanelled
External CPA (normally a
External CPA External CPA qualified Chartered
(normally a qualified (normally a qualified Accountant).
Chartered Chartered
Accountant). Accountant).
The CPA then The CPA then

makes a visit to the makes a visit to the
applicant’s place of applicant’s place of
business and business and
obtains information obtains information The CPA then makes a
Limited about the about the visit to the applicant’s place
Income Not applicable customer’s business customer’s business of business and obtains
Program – inflows, outflows, – inflows, outflows, information about the
expenses, assets, expenses, assets, customer’s business –
liabilities etc – and liabilities etc – and inflows, outflows, expenses,
prepares a report on prepares a report on assets, liabilities etc – and
the applicant’s the applicant’s prepares a report on the
income. This is income. This is applicant’s income. This is
provided by way of provided by way of provided by way of an
an estimated Profit an estimated Profit estimated Profit and Loss
and Loss and and Loss and and Balance Sheet.
Balance Sheet. Balance Sheet. Documents verified at the
Documents verified Documents verified customer’s place include
at the customer’s at the customer’s purchase bills, invoices and
place include place include other documents as
purchase bills, purchase bills, applicable to the customer’s
invoices and other invoices and other trade and nature of
documents as documents as business.
applicable to the applicable to the
customer’s trade customer’s trade
and nature of and nature of
business. business.
Annual Income
calculation Business income = Business income = Business income = PAT as
under PAT as declared in PAT as declared in declared in ITR * 4. or
23 Not applicable
ITR * 4. or (CPA ITR * 4. or (CPA (CPA PAT – ITR PAT)*0.75
Limited
PAT – ITR PAT – ITR + ITR PAT,
Income
PAT)*0.75 + ITR PAT)*0.75 + ITR
Program
PAT, PAT,
CONFIDENTIAL 23
TAT
FinancialCapitale
Services Ltd.
Whichever is lower Whichever is lower Whichever is lower is

is considered as is considered as considered as annual
annual business annual business business income.
income. income.
Other income can be
Other income can Other income can added back to the arrived
be added back to be added back to business income
the arrived business the arrived business
income income
**where Partnership firm is the

main applicant in the loan and
the eligibility is based on its
Income, Salary and Interest
paid to the Partners would be
added to the PAT figure and on
the Total Income figure thus
arrived, the multiplier (uptoo
maximum 4 times) would bee
applied.
Following conditions also to be

met:
I. All Partners to be co-

applicants to the Loan.
II. Salary and Interest paid to
the Partners to be
corroborated from
Individual IT Returns of
Partners for the respective
FYs.
III. Salary and Interest paid to

the Partners to be
considered only to the
extent of 80% to factor the
Taxation effect.
It may be noted that It may be noted that It may be noted that

Financials submitted Financials submitted Financials submitted by the
by the Customer for by the Customer for Customer for Loan to be
24 Loan to be Loan to be considered under LIP
considered under considered under beyond Rs 200 lacs need to
LIP beyond Rs 200 LIP beyond Rs 200 be necessarily Audited
lacs need to be lacs need to be
necessarily Audited necessarily Audited
CONFIDENTIAL 24
TAT
FinancialCapitale
Services Ltd.
Additional Checks: Additional Checks: Additional Checks:
Net worth (Market Net worth (Market Net worth (Market Value)
Value) should be 3 Value) should be 3 should be 3 times of proposed
times of proposed times of proposed loan.
loan. loan.
Eligibility under Eligibility under Eligibility under Normal

Normal Income Normal Income Income method should be
method should be method should be 50% of proposed loan amount
50% of proposed loan 50% of proposed loan under LIP. Cases where
amount under LIP. amount under LIP. eligibility under Normal
Cases where eligibility Cases where eligibility Income method is < 50% but
under Normal Income under Normal Income > 40%, 12 MOB RTR of EMI
method is < 50% but > method is < 50% but > equivalents to 50% of
40%, 12 MOB RTR of 40%, 12 MOB RTR of proposed LIP loan EMI.
EMI equivalents to EMI equivalents to
50% of proposed LIP 50% of proposed LIP
loan EMI. loan EMI.
Average bank balance should
Average bank balance Average bank balance be 0.50 time of EMI being
should be 0.50 time of should be 0.50 times offered. Two accounts can be
EMI being offered. of EMI being offered. merged to arrive at Average
Two accounts can be Bank Balance.
Two accounts can be
merged to arrive at
Average Bank merged to arrive at
Balance. Average Bank
Balance. RCM visit mandatory for
loan amt of beyond Rs 200
RCM visit mandatory RCM visit mandatory lacs
for loan amt of beyond for loan amt of beyond
Rs 200 lacs. Rs 200 lacs.
No Deviation on DBR at
any level under this
No Deviation on No Deviation on program.
DBR at any level DBR at any level
under this under this
program. program. LTV: 60% on Residential
Property and 50% on
LTV: 60% on LTV: 60% on Commercial Property.
Residential Property Residential Property
and 50% on and 50% on
Commercial Commercial
Property. Property. **LTV on alternate
residential and
**LTV on alternate **LTV on alternate commercial (Rented
residential and residential and /Vacant) property is
commercial commercial capped at 5% less than
(Rented /Vacant) (Rented /Vacant) allowed at self occupied
property is capped property is capped properties
at 5% less than at 5% less than
allowed at self allowed at self
25 occupied occupied
properties properties Maximum loan to be
capped at:
Maximum loan to Maximum loan to
be capped at: be capped at:
CONFIDENTIAL 25
TAT
FinancialCapitale
Services Ltd.
A) Rs 500 lacs for A)Rs 500 lacs for A)Rs 500 lacs for
Mumbai, Pune, Mumbai, Pune, Chandigarh, Surat,
Indore, Ahmedabad, Indore, Ahmedabad, Ahmedabad, Pune,
Surat, Delhi, Surat, Delhi, Bangalore, Chennai, Jaipur,
Chandigarh, Jaipur, Chandigarh, Jaipur, Nagpur, Cochin
Chennai and Chennai and Trivandrum, & Ludhiana
Bangalore Bangalore locations. for Mumbai,
Pune, Indore, Ahmedabad,
Surat, Delhi, Chandigarh,
B) Rs 300 lacs for B) Rs 300 lacs for Jaipur, Chennai and
other locations other locations Bangalore
B) Rs 300 lacs for other

locations
a. 30+ Delinquency level of 1.50%.

b. < 6 MOB 30+ delinquency level of 1%.
Portfolio
Trigger/
Review & Portfolio under enhanced LIP limits to be reviewed after 6-months of its launch.
monitoring
under LIP Initial 5 transactions declined solely on account of additional check of loan eligibility under normal
income program (for > 3 crs <= 4 crs category for Mumbai & Delhi) would be reviewed from the stated
policy parameter fitment perspective.
Gross margin Gross margin Gross margin method of

method of method of computing income involves
computing income computing income taking Margins as stated in
involves taking involves taking Industry list OR PBDIT
Margins as stated in Margins as stated in margins as assessed by CA
Industry list OR Industry list OR (lower of the two subject to
PBDIT margins as PBDIT margins as maximum 15%) of the
assessed by CA assessed by CA Turnover declared in
(lower of the two (lower of the two audited financials, as the
subject to maximum subject to maximum total income. CC interest to
15%) of the 15%) of the be deducted from the
Turnover declared Turnover declared Income so derived to
in audited financials, in audited financials, arrive at the final business
Gross Margin as the total income. as the total income. income to be considered
Not applicable CC interest to be CC interest to be for calculating loan
method
deducted from the deducted from the eligibility.
Income so derived Income so derived
to arrive at the final to arrive at the final Gross Margin is defined as
business income to business income to total turnover or total sales
be considered for be considered for revenue minus the sales
calculating loan calculating loan costs. Essentially it will be
eligibility. eligibility. the Total Sales – cost
directly related to the sale
26 Gross Margin is Gross Margin is of the good.
defined as total defined as total
turnover or total turnover or total
sales revenue sales revenue
minus the sales minus the sales
costs. Essentially it costs. Essentially it
will be the Total will be the Total
CONFIDENTIAL 26
TAT
FinancialCapitale
Services Ltd.
Sales – cost Sales – cost

directly related to directly related to
the sale of the the sale of the
good. good.
This program This program This program requires

requires customers requires customers customers to provide tax
to provide tax to provide tax audits/vat returns and for
audits/vat returns audits/vat returns customers filing returns for
and for customers and for customers the last two years within the
filing returns for the filing returns for the stipulated time.
last two years within last two years within
the stipulated time the stipulated time.
Interest Leverage Interest Leverage Interest Leverage ratio
ratio (PBDIT / ratio (PBDIT / (PBDIT / Interest paid) to
Interest paid) to be be greater than equal to 2
Interest paid) to be
greater than equal for all cases. Debt/ Equity
greater than equal
to 2 for all cases. to be less than 3. Current
to 2 for all cases.
Debt/ Equity to be
Debt/ Equity to be ratio should be more than
less than 3.
less than 3. 1 times.
Current ratio
should be more Current ratio
than 1 times. should be more
than 1 times.
CA assessment report is
CA assessment
CA assessment required for correct business
report is required for
report is required for assessment & margin
correct business
correct business evaluation
assessment &
margin evaluation assessment &
Note this program is
margin evaluation
applicable to
Note this program
Note this program Proprietorship concerns
is applicable to
also.
Proprietorship is applicable to
concerns also. Proprietorship
concerns also.
If there is an If there is an If there is an increase of >

increase of > 50% in increase of > 50% in 50% in Turnover over the
Turnover over the Turnover over the Previous year then
27 Previous year then Previous year then averaging needs to be
averaging needs to averaging needs to done. Eg – if the Turnover
be done. Eg – if the be done. Eg – if the was Rs 15 crs
Turnover was Rs 15 Turnover was Rs 15
crs crs last year and this year it is
Rs 25 crs then average of
CONFIDENTIAL 27
TAT
FinancialCapitale
Services Ltd.
last year and this last year and this the last 2 years needs to be
year it is Rs 25 crs year it is Rs 25 crs considered (Rs 20 crs)
then average of the then average of the
last 2 years needs last 2 years needs
to be considered to be considered
(Rs 20 crs) (Rs 20 crs)
Max loan to be Max loan to be Max loan to be capped at

capped at capped at
e. For Delhi, Chandigarh,
Mumbai, Pune, Kolkata,
a. For Delhi, c. For Delhi,
Bangalore, Chennai,
Chandigarh, Chandigarh,
Ahmedabad, Jaipur,
Mumbai, Pune, Mumbai, Pune,
Ludhiana, Nagpur &
Kolkata, Bangalore, Kolkata, Bangalore,
Vijayawada locations,
Chennai, Chennai,
maximum loan limit under
Ahmedabad, Jaipur, Ahmedabad, Jaipur,
Gross margin program is
Ludhiana, Nagpur & Ludhiana, Nagpur &
Rs 500 lacs
Vijayawada Vijayawada
locations, maximum locations, maximum
f. Cases of Tata Ecosystem
loan limit under loan limit under
& established Automobile
Gross margin Gross margin
dealerships Customers to
program is Rs 500 program is Rs 500
be considered upto Rs 500-
lacs lacs
lacs on a case to case
basis.
b. Cases of Tata d. Cases of Tata
Ecosystem & Ecosystem &
c For other cities, the
established established
Automobile Automobile maximum loan limit under
dealerships dealerships the program is Rs 300 lacs
Customers to be Customers to be
considered upto Rs considered upto Rs
500-lacs on a case 500-lacs on a case
to case basis. to case basis.
c For other cities, c For other cities,

the maximum loan the maximum loan
limit under the limit under the
program is Rs 300 program is Rs 300
lacs lacs
All the repayments All the repayments All the repayments

should be either should be either should be either
All the repayments should
PDC backed or ECS PDC backed or ECS PDC backed or ECS
be either PDC backed or
and should be in the and should be in the and should be in the
Balance ECS and should be in the
form EMI’s only. We form EMI’s only. We form EMI’s only. We
transfer ( not form EMI’s only. We cannot
cannot fund the cannot fund the cannot fund the
applicable for fund the customer based on
customer based on customer based on customer based on
Rent cooperative bank tracks
cooperative bank cooperative bank cooperative bank
28 securitization) tracks tracks tracks
Minimum 6 months Minimum 6 months Minimum 6 months

Minimum 6 months
Repayment track Repayment track Repayment track
Repayment track should
should obtained should obtained should obtained
CONFIDENTIAL 28
TAT
FinancialCapitale
Services Ltd.
from the approved from the approved from the approved obtained from the
list of financiers list of financiers list of financiers approved list of financiers
Balance
transfer + Top
Applicable subject Applicable subject
up . Applicable subject to Applicable subject to
to residual age , to residual age
residual age DBR residual age , DBR and LTV
DBR and LTV DBR and LTV
(not applicable and LTV norms norms
norms norms
for Rent
securitisation)
Income
calculation for Income program
All programs All programs All programs
Balance only
transfer
DBR for gross 70%for Normal 70%for Normal 70%for Normal Income,
annual income Income, 60% under Income, 60% under 60% under Gross Margin
50%
as per ITR Gross Margin and Gross Margin and and LIP.
below 5 lacs LIP. LIP.
DBR for gross 55% 70%for Normal 70%for Normal 70%for Normal Income,
annual income Income, 60% under Income, 60% under 60% under Gross Margin
as per ITR Gross Margin and Gross Margin and and LIP.
above 5 lacs LIP. LIP.
Min loan per

applicant
under
Minimum Rs 10 lac Min Rs 10 lac Min Rs 10 lac Min Rs 10 lac
Financial
income
product
Rate of Interest
As communicated by the business from time to time.
& Fees
Min 1 yr Min 1 yr Min 1 yr Min 1 yr
Max up to 15 yrs for Max up to 15 yrs for

Max up to 15 yrs for
residential residential Max up to 15 yrs for
residential
properties. properties residential properties. Max
properties. Max 10
10 years for rent
Term years for rent
Max 10 years for Max 10 years for securitization.
securitization
rent securitization rent securitization
Max up to 10 yrs for Max up to 10 yrs for Max up to 10 yrs for

Max up to 10 yrs for
commercial commercial commercial
29 commercial properties
properties properties properties
CONFIDENTIAL 29
TAT
FinancialCapitale
Services Ltd.
*Residual age of
*Residual age of *Residual age of
property as
property as property as
determined by site *Residual age of property
determined by site determined by site
engineer’s report as determined by site
engineer’s report ( engineer’s report (
engineer’s report ( Loan
Loan tenor not to Loan tenor not to
( Loan tenor not to tenor not to exceed residual
exceed residual age exceed residual age
exceed residual age age of the property at the
of the property at of the property at
of the property at the time of disbursement)
the time of the time of
time of
disbursement) disbursement)
disbursement)
Only 2 collateral / Only 2 collateral / Only 2 collateral / Only 2 collateral / property

property per property per property per per applicant .Property
applicant .Property applicant .Property applicant .Property should be within Municipal
Multiple
should be within should be within should be within limits and falling in /TCFSL
Property
Municipal limits and Municipal limits and Municipal limits and Operating location.
falling in /TCFSL falling in /TCFSL falling in /TCFSL
Operating location. Operating location. Operating location.
Mortgage of Mortgage of
Mortgage of property
property by property by
by memorandum of Mortgage of property by
memorandum of memorandum of
entry or as memorandum of entry or as
entry or as entry or as
Security of the mandated by legal mandated by legal from
mandated by legal mandated by legal
loan from time to time. time to time. First and
from time to time. from time to time.
First and exclusive exclusive charge of the
First and exclusive First and exclusive
charge of the property
charge of the charge of the
property
property property
Either thru- Either thru-

Either thru- Either thru-
*Post dated * Post dated
* Post dated * Post dated Cheques from
Mode of Cheques from core Cheques from core
Cheques from core core banking only
repayment ( banking only banking only
banking only Not
EMI) only
applicable Not applicable
*Deduction at source Not applicable
* ECS * ECS
* ECS * ECS
Minimum 36 nos Minimum 36 nos Minimum 36 nos

No of PDC for Minimum 36 nos and in
and in multiples of and in multiples of and in multiples of
EMI multiples of 12 thereon
12 thereon 12 thereon 12 thereon
Favouring the Favouring the Favouring the

Favouring the borrower
borrower borrower borrower
Those cases in Those cases in Those cases in which the

Those cases in
30 Disbursal
which the borrower’s
which the which the borrower’s sale agreement /
borrower’s sale borrower’s sale sale deed is pending for
sale agreement /
agreement / sale agreement / sale registration with the sub-
sale deed is pending
deed is pending for deed is pending for registrar will not to be
for registration with
registration with the registration with the sanctioned /disbursed.
the sub-registrar will
sub-registrar will sub-registrar will not
CONFIDENTIAL 30
TAT
FinancialCapitale
Services Ltd.
not to be sanctioned not to be to be sanctioned

/disbursed. sanctioned /disbursed.
/disbursed.
In case of balance In case of balance In case of balance

transfer /take over In transfer /take over transfer /take over
In case of balance transfer
favor of HFC/ Bank, In favor of HFC/ In favor of HFC/
/take over In favor of HFC/
whose loan is being Bank, whose loan is Bank, whose loan is
Bank, whose loan is being
prepaid. being prepaid. being prepaid.
prepaid.
In case of balance In case of balance In case of balance
In case of balance transfer
transfer the transfer the transfer, the
cases the disbursement
disbursement disbursement disbursement
cheque to be drawn as xyz
cheque to be drawn cheque to be drawn cheque to be drawn
Bank – Loan A/c Mr ABC”
as “ xyz Bank – as “xyz Bank – as “xyz Bank –
Loan A/c Mr ABC” Loan A/c Mr ABC Loan A/c Mr ABC
As communicated by Business from time to time.

Pre-Payment
fees
1. End use letter: 1. End use letter: 1. End use letter: 1. End use letter:
Undertaking by the Undertaking by the Undertaking by the

borrower specifying borrower specifying borrower specifying
Undertaking by the
the end use of the the end use of the the end use of the
borrower specifying the end
Additional loan and that the loan and that the loan and that the
use of the loan and that the
Documentation loan shall not be loan shall not be loan shall not be
loan shall not be used for
used for any used for any used for any
any speculation, illegal
speculation, illegal speculation, illegal speculation, illegal
activities, litigation or any
activities, litigation or activities, litigation activities, litigation
other nefarious activities.
any other nefarious or any other or any other
activities. nefarious activities. nefarious activities.
1.6 a. Lending Limits:-

Alternate Limited Banking
Customer Income based on Gross Margin
Collateral Income Program
Category Financials Method
Program Program
Not Not Not applicable

Salaried Max Rs.50 lacs Not applicable
applicable applicable
31 SEP Max Rs.1000 Max Rs.300 Max Rs.500 Max Rs. 300 lacs
Max Rs. 500 lacs
Individual lacs* lacs lacs
SENP Max Rs.1000 Max Rs.300 Max Rs.500 Max Rs. 300 lacs
Max Rs. 500 lacs
CONFIDENTIAL 31
TAT
FinancialCapitale
Services Ltd.
Non Max Rs. 1000 Max Rs.300 Max Rs.500 Max Rs. 300 lacs
Max Rs.500 lacs
1.7 Income calculation / Product Amendments
a) Based on Financials:-
For Individuals Loans
Category Income Definition
Income as reflected in Net Salary reflected in salary slips

Salaried
* Addition of variables which are assured fixed component to the
customer.
PAT + Depreciation + Other Income (continuous for 2 yrs) – (excluding)

Self Employed Professionals any other income which is non continuous in nature e.g. sale of property
etc.
PAT + Depreciation + Other Income( continuous for 2 yrs) – (excluding)

Self Employed Non Professionals(proprietors) any other income which is non continuous in nature e.g. sale of property
etc.
Partner of Partnership firm

Partner's Salary+% of Deprecation in ratio of his profit sharing+ Interest
Paid on Partner's Capital in case of partnership firm+ share of profit.
Director of Private/Public Ltd Company Director's Remuneration
PAT and Depreciation to be averaged if the current year PAT and Depreciation is more by 50% of the last year.
For Non Individuals Loans
(PAT+ Depreciation + Other Income( continuous for 2 yrs) +Interest to

Partnership firm partners +Partner remuneration )
(PAT+ Depreciation + Other Income( continuous for 2 yrs) +Director's

Pvt. Ltd. Cos\ remuneration)
Proprietor (PAT+ Depreciation + Other Income (continuous for 2 yrs) )
PAT and Depreciation to be averaged if the current year PAT and

32 Depreciation is more by 50% of the last year.
Interest Add back: In case of buy over of a Home Equity loan from another institution then the interest paid to the
bank in that financial year can be added back if it reflects as a expense in P&L. Certificate of interest paid in that
financial year is mandatory from the bank. Bank statement reflecting the interest entries for a year can be accepted as
an alternate document. Similarly, any loans which are duly obligated or closed after latest audited financial year but
whose interest expenses are debited in latest financial statement under review – same can be added back.
CONFIDENTIAL 32
TAT
FinancialCapitale
Services Ltd.
1.8 Non Residential Premises (NRP) purchase program –
NON-RESIDENTIAL PREMISES (NRP) PURCHASE POLICY PARAMETERS
S No Parameter Guideline/ Limit
1 Customer Category Salaried, SENP, SEP & NI
Ready Office space, Showroom & Retail shops with > 500 sq fts BUA to be
considered; Industrial gala/manufacturing units, Commercial properties in Malls not
covered under this program..
Apart from Ready property , Under Construction Structure also added in

acceptable collateral under NRP Program :
2 Property type
Structure to be complete which translates to about 60%-65% stage of construction –
this needs to be certified by Panel Valuer
Under-construction projects/properties pose risk of delayed completion/non-

completion of construction. The stated risk should be mitigated through careful
selection of Projects of only good and established Developers in the area/city
3 Transaction type Builder Purchase & Resale ; No Refinance allowed
4 Programme applicable Normal Income Program , Gross Margin Program, LIP and Banking Program
5 Min Loan amt 10-lacs
6 Max Loan amt 500-lacs
7 Min Tenor 1-yr
8 Max Tenor 10-yrs
9 LTV 60% of Mkt Value or 100% of Cost of property whichever is lower
Two valuations from empanelled Valuer to be taken; lower of the two to be considered
10 Valuations
for LTV calculation
Clear Legal opinion and search covering 13-yrs title chain to be obtained from
11 Legal opinion
empanelled Lawyer
33 12 Repayment ECS
13 Portfolio Capping 15% of TCFSL portfolio subject to overall 25% non-housing cap
CONFIDENTIAL 33
TAT
FinancialCapitale
Services Ltd.
 All other policy parameters with respect to Age, Number of Borrowers, KYC documentation, Verifications,
Income documentation & consideration, DBR, Deviations, etc to be the same as applicable for other programs
in Home Loan Credit Policy.
 The programs would be applicable only for Hub Locations (Credit Manager location)
 Any deviation to the norms listed in the Table above would be treated as a Policy deviation and would be routed
to Risk for approval. Approvals, other-wise, would be as per the DOA in force.
1.9 Introduction of Banking Product
The Program is aimed at acquiring customers who do not have adequate Incomes declared in the financials, however,
demonstrate satisfactory Banking behaviour and maintain higher liquidity in their Bank accounts.
The product attempts to derive the Income of the Customer by assessing his bank balances and extrapolating them to arrive
at an Income figure based on which Loan eligibility can be computed. CA assessment of Customers business is also carried
out to understand the cash flows of the Business.
The table below describes the methodology used for computing loan eligibility under the Banking Product.
((Average of bank balances maintained on 5th, 15th, 20th & 25th over last one
A. Loan eligibility based on bank
year period * 0.50 * 12) – (Obligations * 12)) / (EMI per Lac * 12)
balances
((CA assessed PAT + Depreciation + Interest on Loans closed/ obligated +
B. Loan eligibility based on CA Directors remuneration/ Partners Interest & Salary net of tax) * 0.50) –
assessed Income Income Obligations*) / (EMI per Lac*12)
Final Loan eligibility Lower of Loan eligibility computed under point A & B above
The treatment of Obligations* would be as follows:
a. If serviced from same Bank account/s which are considered for banking calculations, shall be ignored as the bank
balances are already net of EMI payments.
b. If serviced from a different Bank account than the ones considered for banking calculations, shall be considered as
obligations and deducted from the Income extrapolated from the average bank balances.
c. The EMI obligations shall be duly obligated under CA assessment method, irrespective of whether they are
serviced from same bank account or some other bank account.
The Product parameters are detailed out in the table below.
Parameters Guideline/s
Applicable for all Self employed Professionals & Self employed non
Target Segment Professionals profiles except those falling in Caution/ Negative profile
category
Minimum Loan amount INR 20 lacs
34 INR 200 lacs for Cities other than Mumbai & Delhi
Maximum Loan amount
INR 300 Lacs for Delhi and Mumbai only for Self Occupied Residential Properties.
Collateral Security Only Self Occupied Residential OR Commercial Property

Maximum No of Collaterals allowed Two
CONFIDENTIAL 34
TAT
FinancialCapitale
Services Ltd.
A. Residential property – 12 yrs for loan amount upto 100-lacs, 15 yrs for
Maximum Tenor
loan amount > 100-lacs upto 300 lacs
B. Commercial property – 10 yrs
Maximum LTV allowed 60% for SORP ; 55% for SOCP
Minimum Business Vintage 5 Years

Nos of Bank accounts clubbed Three
Maximum two current accounts + one Savings account.
Savings/ Current
Only reputed co-operative banks with computerized banking can be
considered sub to positive RCU check and RCU approval.
Period - Bank Statement required 1 Year

Ageing of Bank accounts considered for 2 year
calculations
Max Cheque Bounces in bank accounts 2% Inward Cheque returns
Min Number of Credit Transaction 2 Credits per month OR annual 24 Credits
To be deducted from respective months average balance. Customer should

Loan Credits Observed not have availed any Mortgage Cash-out loan OR > Two Unsecured loans
within last 6-months period of the loan application date
Exceptional/ One time Credits To be deducted on same lines as Loan Credits
To be conducted by empanelled CA agency for all cases
**CA assessment can be waived at RCM level for loan amt upto 200 lacs
CA assessment
To be conducted by Location Credit Manager upto INR 150-lacs ; for cases

Personal discussion (PD)
> INR 150 lacs, to be conducted by RCM
Financial Documents 2 Year ITR along with Certified or Audited Financials
Turnover & Profits should reflect growth as per the Financials provided ; In
Turnover growth/ Profitability criteria
case of dip in Profits, same should not be > 25% of previous FY
All other policy parameters w.r.t. KYC, Verifications, Valuations & Legal appraisal, etc. as per the mainframe Credit policy of
Home Equity product shall be applicable for the Banking program as well.
Cases under Banking product > Rs 200 lacs to be decisioned at Risk level
Portfolio Triggers/ Review & monitoring :
1. Portfolio cap of 10% of the overall Home Equity book for the first year of the Product.
35 2. 30+ Delinquency level of 1.50%.
3. < 6 MOB 30+ delinquency level of 1%.
Portfolio under Banking product to be reviewed after 6-months of its launch. Initial 5 transactions declined solely on account
of additional check of loan eligibility under CA assessed income would be reviewed from the stated policy parameter fitment
perspective.
CONFIDENTIAL 35
TAT
FinancialCapitale
Services Ltd.
1.10 Funding against Rent Receivables:-

This is loan against non self occupied commercial / residential
property.
Eligible Borrower:
A Individuals, proprietorship, partnership, Public Limited Companies and Private Ltd. Companies owning the
properties.
B Receiving minimum monthly rent of Rs.40,000 from the property offered as security
C The property shall be unencumbered with clear & marketable title in favour of the owner
Eligible Properties:
A Properties located in the following prime areas:
 Jamshedpur
 Delhi(NCR)
 Mumbai
 Calcutta
 Chennai
 Hyderabad
 Pune
 Bangalore
 Bhubneshwar
 Chandigarh
 Luckhnow
 Jaipur
 Ahmedabad
 Ludhiana
 Jalandhar
 Kanpur
 Raipur
 Bhopal
 Indore
 Nagpur
 Mysore
 Mangalore
 Chennai
 Trivandrum
 Cochin
 Coimbatore
 Surat
36
And any other TCFSL/ TCHFL operating locations.
B The property shall be unencumbered, with clear & marketable title in favour of the owner.
CONFIDENTIAL 36
TAT
FinancialCapitale
Services Ltd.
Eligible Category A Tenants:
A Reputed Public Sector/Private Sector/multinational Undertakings, embassies, consulate offices of

foreign countries, public sector/private sector/foreign banks and financial institutions.
National/International Airlines etc.
B Check for Rental credit from 6 month bank statements. Rentals to be credited on the same day of
every month or maximum with two days difference. In addition, there should not be any rental credit
delay in the last six months
C In case of commercial organizations, it should be profit making and shall be in existence for a period of
not less than 10 years.
D The lease / rental agreement should have vintage of more than 6 months. This will give comfort
towards smooth rental /lease agreement between the leaser /lessee or between landlord / tenant
Loan Eligibility Calculation
Min Rs 10 lac
Max Rs 10 crs*
Loan Amount *Exception to this to be reported to TCFSL Board
Min 1 yrs
Term Max 10 yrs
Minimum income levels as per income documents Rs 3 lakhs rental income

for Rent Securitization as declared in ITR
Annual maintenance (if paid by the property owner) and other municipal taxes to be included as part of obligation
while calculating eligibility
The loan shall be sanctioned based on future receivable discounting

The eligible loan amount is equal to 80% of the NPV of the net rentals after adjustments of the TDS and discounting
rates of interest (applicable rates for LRD)
65% for loan amounts up to Rs.5 crs

LTV for Residential Properties
60% for loan amounts above Rs.5 crs
55% for loan amounts up to Rs.5 crs

LTV for Commercial Properties
50% for loan amounts above Rs.5 crs
Lower of:
37
Loan Amount 1) The eligible loan amount is equal to 80% of the NPV of the
net rentals after adjustments of TDS and discounting by rate
of interest
2) eligible loan as per LTV
CONFIDENTIAL 37
TAT
FinancialCapitale
Services Ltd.
Note :
a) Where there is a clause in the agreement for renewal of the lease period, loan to the extent of maximum of 2
renewal periods may be considered on case to case basis. (i.e. if original agreement is executed for a period of 3
years, maximum total tenure of 9 years may be considered).b) In case of takeover of LRD from other Bank/ FI
additional loan amount may be considered based on the balance lease period in the agreement
Loan Eligibility Calculation
a) The amount of loan will be based on the net rentals after discounting. The gross rental as per the lease agreement
needs to be adjusted for TDS, municipal taxes, property maintenance costs, surcharge, margin and any other levies
of any type to arrive at net rental
b) The discounting rate (Rate of Interest) should reflect the riskiness of the deal giving due weight to the risks
associated with it
c) Where maintenance charges are paid by the lessee separately, these charges should be included as part of rent to
arrive at the quantum of loan
d) Only post TDS rental amounts will be accepted for calculations
e) Rent receivable is calculated after deducting taxes and statutory dues of the lessor
f) Future Lease Rental Receivables : Gross rent Receivables less (advance rent received + property tax + income tax
+ other statutory dues of the lessor).
Security:
A The Primary security of rent receivable property.
B Charge on the Escrow account in which all the rent will be received.
6 PDC with EMI amount and 1 SPDC for the entire amount to be taken to mitigate the risk of delay in
C
opening of Escrow account
Amount equal to 2 EMI value to be retained as float in the newly opened Escrow account and customer to
D
give an undertaking to deposit the same post opening of the Escrow account
Co-applicants :-
A One co-applicant to the satisfaction of TCFSL
B All property owner should be co applicant to the loan
Other terms and conditions:
A A letter from lessee mentioning the acceptance to assign the rentals to TCFSL on the company letter head.
Irrevocable POA shall be executed by the Borrower in favour of TCFSL to collect monthly rentals from the Lessee on
B
his behalf and assignment of Rentals
38
C A Loan agreement shall be obtained apart from other loan documents of TCFSL.
D It shall be ensured periodically that all the statutory dues are being paid by the borrower regularly.
CONFIDENTIAL 38
TAT
FinancialCapitale
Services Ltd.
E Escrow Account to be operational for all rental receipt and PDC/ECS from the same account
Special Deviations under Rent Securitization:-
Deviation details Authority
Product Credit Head +

Lease rental agreement with vintage below 6 months, however backed by good
organizations.
Risk Manager
Product Credit Head +

Age of the Individual at the time of rent discounting above 70 years and below 80
years
Risk Manager
TCFSL EMI upto 85% of the net rentals after adjustments of the TDS and Product Credit Head + Risk
discounting by Rate of Interest Manager
Policy Review Trigger:
Rs 100-crs of LRD disbursement or 6-months from the date of Roll out of revised policy guidelines, whichever is earlier.
PDD Trigger
ESCROW A/c to be opened 60 days from the date of disbursement.
PDD pendency for greater than 60 days not to exceed 10% of the total LRD portfolio from date of roll out of the policy.
Example for LRD Calculation.

God Granites has a lease agreement for six years with Food Bazaar and receiving a monthly rental income of Rs.3.00
lac. There is a 10% rental incremental after 36 months. The loan eligibility is calculated as per below table. Property
value as per the lowest valuation is Rs. 2.50 crores. LTV = 55% = Rs.1.37 crores
Loan amount will be lower of the two

a) Rs.1.14 crores arrived as per LRD calculator b) Rs.1.37 crores arrived as per LTV
norms
1.11 Gross Receipts Program for Self Employed Professionals:-
This program is aimed at targeting Self Employed Professionals (Doctors and Architects, etc). The table below
outlines the guidelines of Loan eligibility computation for SEP profile based on their Gross Receipts. Competition
39 offerings to the SEP profiles have been studied & analyzed for arriving at the proposed guidelines.
Parameters Guidelines
MBBS/MD /MS/MDS Doctors, & Architects
Target Segment Doctors running bedded Hospitals/ Labs etc. would not be considered under Multiplier method
CONFIDENTIAL 39
TAT
FinancialCapitale
Services Ltd.
Category of Loans All category of loans as per Home Equity Loan Policy
Minimum Loan Amount INR 20 lacs
Maximum Loan Amount INR 500 lacs
Maximum Tenor 15 years for Residential Property and 10 years for Commercial Properties
LTV As per Home Equity policy
Min Experience 7 years for MBBS & Architect and 3 years for MD, MS and MDS
Qualification certificates for MBBS/MD/MS/MDS/B. Arch/M. Arch
Mandatory Documents Last 2-FYs Audited Financials ,6-months bank statements and KYC
20-lacs for MD/MS/MDS Doctors

Documents
Minimum Gross
15-lacs for MBBS Doctors
Receipts Minimum net worth of 2-times the loan applied. CA certified net worth statement to be documented.
(as per latest audited financials)
Net Worth The net worth of spouse and dependent children can be added to the applicant’s net worth. Spouses
to be co- applicant in such cases
A) Gross Receipt multiplier method
Loan amount = *Annual Gross Receipts as declared in Audited
Financials* Multiplier of 4 for MD/MS/MDS doctors, 2.5 for MBBS doctors
& 2 for Architects

Eligibility computation
*If there is jump of > 50% in latest FYs Gross Receipts as compared to previous year,
average of two years to be considered
B) DBR method
Loan Amount for Doctors = (Annual Gross Receipts – Other obligations *
12) / (EMI per lac * 12)

Banking Parameters Average Bank Balance to be => proposed EMI
Collateral Loan Amount
Residential, for other
Commercial andSEP profiles = (0.80*Annual Gross Receipts – Other obligations *
Resi-cum-Clinic
12) / (EMI per lac * 12)
All Other norms (KYC, Verification, and Banking) are as applicable in the Home Equity Credit Policy.
Any deviation to the above mentioned norms will be treated on the lines of the DOA and Deviation matrix.
Loan eligibility : lower of A and B
1.12 Alternate Collateral Funding:-
We propose to fund Residential plots, industrial property, Hotels up to 30 Rooms and small nursing homes/hospitals only
for North and West Regions The Product parameters are detailed out in the table below.
A. Common norms:
40
Applicable for all Self employed Professionals & Self employed non
Target Segment Professionals except those falling in Caution/ Negative profiles as enumerated in
the Home Equity mainframe policy.
CONFIDENTIAL 40
TAT
FinancialCapitale
Services Ltd.
Fundable Locations All loactions
Maximum Loan amount INR 300 lacs for all locations
Only Residential Plot allotted by Government authority, Cat A Builders such as

DLF etc.
Only Government authority allotted Industrial property

Collateral Security
Hospital/Nursing Homes
Hotels up to 30 Rooms in approved Commercial and Industrial Area.
Maximum No of Collaterals allowed One
Maximum Tenor 10 yrs
Maximum LTV allowed 50% of the Market Value
Minimum Business Vintage 5 Years of cash profit
Personal discussion (PD) To be conducted by Location Credit Manager up to INR 300-lacs
Financial Documents 2 Year ITRs along with audited financials
Eligibility to be calculated under Normal income program ,LIP Program me &

Eligibility program
Gross Margin program
Pricing Minimum 14% ROI
Refer Note 1 for Plot funding
Refer Note 2 for Industrial Property funding

Other conditions – Refer Specific norms
below
Refer Note 3 for Funding against Nursing Home/Hospitals
Refer Note 4 for Hotel funding.
* Funding against Nursing Home/Hospitals is only for SEP (Self employed Professionals). The set up should be owned
& operated by a professionally qualified person such as MBBS or MD.
41
B. Specific norms:
Note 1: Conditions applicable for Residential Plot funding

 Plot should have been allotted by some local government authority such as DDA,HUDA or they should have
been allotted by CAT A builders like DLF. It should be within Municipality Limit.
 The boundaries should be clearly demarcated and it should be identifiable without any help.
CONFIDENTIAL 41
TAT
FinancialCapitale
Services Ltd.
 Plot should be Non Agriculture Plot as per documents & usage

 There should be proper numbering done by the Authority/builders. Plot to be situated in Established colonies
and not in uninhabited localities like Greater Noida, Loni etc.
 Two technical reports should be obtained as part of the credit appraisal process and both should have a proper
route map for reaching the plot from main landmark (bus depot / station / school, etc.)
 Plot area should not be >2000 sq yards
Note 2: Conditions applicable for funding against Industrial Property

 Industrial property funding will be done only on authority allotted property like Noida Authority, Greater Noida
Authority, HSIDC etc. It should be approved by Government authority.
 There should be a proper license to run the industry from respective authority.
 Property should be self occupied/used for Self consumption. It should not be vacant.
 Usage & ownership should be as per allotment terms as mentioned in Allotment.
 Land area should not be >2000 Sq yards
 All type of industrial property provided the property is in approved industrial area
Note 3: Conditions applicable for funding against Nursing Homes/Hospitals

 Funding should be against small nursing Home/Hospitals having 20-25 beds facility.
 It should be in self occupation of the customer.
 It should necessarily be owned & operated by professionally qualified person such as MBBS or MD.
 Applicant should have local authority approval in place for running said hospital / nursing home and should also
be paying timely commercial taxes on the same.
Note 4: Conditions applicable for Hotel funding
 Funding should be against small Hotels up to 30 Rooms.
 Hotel should be located in approved commercial and Industrial area
 It should be in Self occupation of customer
 Applicant should have local authority approval in place for running said Hotel and should also be paying timely
commercial taxes on the same
 Property must have commercial plan approval and should not be a residential plan approved property being
used for commercial purpose.
All other policy parameters such as KYC, verifications (FI, RCU, Dedupe etc.), valuations, legal & technical appraisal etc.
as per the mainframe Credit policy of Home Equity product shall be applicable for the above property collateral funding
as well.
Cases upto 50 lacs to be decisioned at RCM level, cases at NCM / Risk Manager / Product Risk head to be decisioned
as per their authority in DOA
Portfolio Triggers/ Review & monitoring:

1. Monthly disbursals should not exceed 20% of the increment disbursals of last month.
2. 30+ Delinquency level not to exceed 1%.
3. Portfolio under alternate collateral product to be reviewed after 6-months of its launch or on reaching 100 cr of gross
disbursement - whichever is earlier.
1.13 EDI Program:-
We at Tata Capital Financial Services Ltd propose to funds schools, and educational institutes (only Schools up to
42 12th standard) run by private bodies, companies, firms, societies and Trust. Public charitable Institution/Trusts
would be funded if it complies with the guidelines provided by legal team (given as part of Annexure 1). To start
with, we intend to offer this proposed product in designated TCFSL Home Equity locations in North & West regions
only.
CONFIDENTIAL 42
TAT
FinancialCapitale
Services Ltd.
The Product parameters are detailed out in the table below.
Educational Institution (only Schools up to 12th standard) run by private

Target Segment bodies, companies, firms, societies and Trusts. Legal Due diligence needs
to be done pre sanction as per the guidelines provided by our internal legal
team (given as part of Annexure 1).
Primary Security would be school owned by Trust/society. Possibility of

Collateral Security Additional collateral to be explored at transactional level which could be
residential / commercial of any member of Trust/Society on best effort basis
Maximum No of Collaterals allowed Two (2)

Maximum Tenor Maximum Tenor of 7 yrs
Maximum LTV allowed LTV to be capped at 50% of the Market Value
Minimum Business Vintage 3 Years of cash profit
To be conducted by Location Credit Manager upto INR 300-lacs ; for cases
Personal discussion (PD)
> INR 300 lacs, to be conducted by RCM
Financial Documents 2 Year ITR along with Audited Financials
STEP 1: CAGR of revenue/sales turnover of last 3 years to be ascertained

from financials.
STEP 2: CAGR of EBIDTA of last 3 yrs to be ascertained from financials.
STEP 3: Lower of the CAGR from step 1 and Step 2 to be considered for
Income Eligibility eligibility subject to 15%.
STEP 4: EBIDTA of Next financial year to be extrapolated with above
CAGR considered in step 3 for coming year.
STEP 5: Avg. of EBIDTA for 2 years to be done (One year Audited and next
year Projected EBIDTA).
STEP 6: DBR of 65% to be applied on resultant figure from step 5 (Avg.
EBITDA 2 years)
STEP 7: Existing obligations to be deducted from resultant figure of step 6
and eligibility ascertained.
1) Hypothecation (Deed of Hypothecation) securing exclusive charge on

fees receivables in case of sole banking & pari passu charge in case of
Repayment Mechanism multiple / consortium banking.
43 2)Escrow of the fees receivables should be entered into with the customer.
Customer to enter into tripartite escrow arrangement with his banker &
lender (TCFSL) on the prime banking account where the fees receivables
are going to flow in. Specific instruction to the parents of the students for
depositing fees in the designated escrow account to be given separately by
the applicant school.
CONFIDENTIAL 43
TAT
FinancialCapitale
Services Ltd.
All other policy parameters w.r.t. KYC, Verifications, Valuations, etc. as per the mainframe credit policy of Home Equity
product shall be applicable for the EDI program as well.
Portfolio Triggers/ Review & monitoring :
2. 30+ Delinquency level of 1.00%.
Portfolio under EDI product to be reviewed after 6-months of its launch or on reaching 50 cr of Gross Disbursement
whichever is earlier
Other conditions/guidelines to be followed:
1. The student strength should be on increasing trend for last 3 yrs, documented from the fees register.
2. In case of funding to institutes which have existing banking relationship, NOC to be obtained before disbursement,
from existing bankers for creation/ceding of charge on receivables.
3. Sanction letter of existing facilities be verified to establish the security structure available to other banks, covenants
imposed by them, repayment pattern imposed by them etc.
4. Existing banking relationship details, i.e. repayment track, penalty if any imposed by the banks etc. should be
examined during credit appraisal of the proposal.
5. End use of the facility should indicate ultimate benefit, i.e. increase in student intake and/or increase in fees by
providing additional facilities/services, to the school by carrying out the proposed capex (to be funded by our loan).
6. RCU Profile check on the proposed educational institute and Collection comfort would be taken upfront prior to going
ahead with credit processing of the proposal.
1.14 : Pre Qualified top up to existing customers
Background: The Home Equity product across the industry has been witnessing increase in foreclosure and since
majority of the portfolio across all lenders comprises of Balance Transfer loans, the retention of portfolio has become a
priority item for every lender. As a result, certain relaxations on policy and commercial terms are now days offered by
every lender for retaining good repayment customers. The customers too have become rate sensitive and are looking for
better deal in terms of cash out and pricing. Another reason for the increase is that many Banks and NBFCs have
stopped charging any foreclosure fees. These are critical times for TCFSL as well wherein last few months have
witnessed a major depletion of the book due to foreclosures on the rise. To combat the same we are proposing a product
whereby we will be giving special offer to existing customers and keep them engaged with our organization. In doing so,
we will be able to sustain the relationship and increase our business.
Advantages:
1. Non involvement of DSA in the proposed product will result in establishing direct relationship with the customer and
open further inroads in exploring cross sell opportunities
2. Business will be sourced without any cost of acquisition. There would be no channel payouts.
3. Present position and strength of customers can be reviewed and exited in case of any early warning signals.
Eligibility Norms
Seasoning of Existing Loan Top-up amount (on the basis of original loan amount)
>=12 MOB 10%
>=18 MOB 15%
44
>=24 MOB 20%
Specific norms/Other Guidelines to be followed:

 The Pre Qualified topup would be calculated on the basis of Original loan amount.
 Tenor of the Topup loan would be restricted to the remaining tenor of the original/primary contract.
CONFIDENTIAL 44
TAT
FinancialCapitale
Services Ltd.
 No approval is required from RISK team for these prequalified Top up if all the conditions are complied. For
pricing the normal laid down process would be followed.
 LTV would be calculated on the basis of the policy parameters, no concession have been allowed on LTV front.
 Pre qualified Top up would not be applicable in cases where in PDD are pending, these topup would be
available on clearance of the PDD.
 Loan disbursal as well as EMI payments have to be from the bank account through which existing loan’s EMIs
are serviced. Change in bank account would be a deviation, requiring approvals from the Risk manager.
 The program would not be applicable to customer who have taken top up loans (both pre-approved and non
pre-approved) in last 12 months.
 The account should have never gone in to 30+.
 NIL Bouncing in last 12 months due to Insufficient funds
 Completed 12 months of seasoning.
 Exclude Cases with OD Amt (on account of fees/charges) > Rs. 2000.
 Exclude Builder/Realty/Realtors/Wine/Infrastructure profiles.
 Exclude Time matured and terminated cases
 Minimum Eligibility Rs 5 Lacs
 Maximum Eligibility of Rs 50 Lacs
 Two Valuations to be conducted from the empanelled valuer & lower of the two valuations to be taken for
computing final eligibility.
Notes:
 In case the customer has more requirement than what has been offered in pre-qualified Top up, he would have
to submit all the relevant documents required for fresh underwriting.
 In a scenario, wherein customer is eligible for pre-qualified Top norms but the LTV is not supporting the
approved amount, we can consider additional collateral subject to valuation parameters being met. No fresh
underwriting would be done in these cases.
 Any future change in the process note would be jointly done at business & risk level.
 In cases where the OD in a particular case is a result of ECS issue or any other technical issues and not
insufficiency of funds, those cases would not be excluded from this offering.

2. 30+ Delinquency level not to exceed 1%.
3. Portfolio under pre qualified top up to be reviewed after 6-months of its launch or on reaching 100 cr of gross
disbursement - whichever is earlier.
Annexure to the Pre-qualified Top up program - Process flow
Process flow will be as follows:

 BIU to share list of customers and eligible amount as per applicable policy of the proposed product with product
team post month end.
 Product team to arrive at a standard format of pre-qualified letter in consultation and approval from Tata Capital
Legal team.
 List of pre-qualified customers and top up amount to be shared with respective credit managers by product
team along with format for pre-qualified letter.
 Credit manager (CM) to issue final pre-qualified letter to sales manager.
 Sales manager (SM) to visit customer with the pre-qualified offer letter and subject to acceptance of the same,
will pick up a PF cheque, KYC documents and initiate technical valuation. If customer expresses interest in a
top up amount greater than Rs 50 Lacs which is the upper cap as per pre-qualified top up product, complete set
45 of documents to be picked from the customer up for normal credit assessment.
 Post valuation, CM to issue final sanction letter to SM as a part of pre-qualified top up program and file
disbursed after execution of documents.
CONFIDENTIAL 45
TAT
FinancialCapitale
Services Ltd.
1.15 : CA based assessment Program:
Proposed Policy Amendments:
Common norms
*Applicable for all Self employed Professionals & Self employed non
Target Segment Professionals except those falling in Caution/ Negative profiles as
enumerated in the Home Equity mainframe policy.
 Residential and commercial properties.

Collateral Security  Commercial vacant and Alternate Collateral to be excluded
 NRP Proposals to be included
Maximum No of Collaterals allowed One
Maximum Tenor 15 yrs in case of Residential property
10
60%yrsofinthe
case of Commercial
Market property
Value in case of residential properties
Maximum LTV allowed
50% of the market value in case of commercial properties
Minimum Business Vintage 3 Years of Business Stability
Financial Documents 2 Year ITRs
Mandatory Joint visit to be done by Credit Manager and empanelled CA .

Formal CA Assessment report with financial Analysis would be submitted by
CA countersigned by CM.
CA Assessment
Joint visit of CA and CM to be done for initial 6 months of the product. After
reviewing the product performance post 6 months, CA based assessed PAT
to be replaced with credit manager assessed PAT for loan amount upto Rs
1 cr. For loan amount above Rs 1 cr, CA based assessment model would
The CA Assessed income will be treated as the final eligible income and
continue.
Eligibility program
DBR will be restricted to 40% with no deviation at any level.
Pricing In range of 1.5%-2% above RAAC pricing

46
 RCM Approval for loan amount upto Rs 50 lacs
Decisionining Power
 NCM Approval for loan amount > 50 lacs< 100 lacs
 Cases>100 lacs to be approved at PRM level

CONFIDENTIAL 46
TAT
FinancialCapitale
Services Ltd.
All other policy parameters such as KYC, verifications (FI, RCU, Dedupe etc.), valuations, legal & technical appraisal etc. as
per the mainframe Credit policy of Home Equity product shall be applicable for the above product as well.
2. 30+<6 MOB level not to exceed 0.5%.
3. Portfolio under this product to be reviewed after 6-months of its launch or on reaching 100 cr of gross
disbursement - whichever is earlier
4. Bounce Rate should be <10%.
Product Code
All cases done under this variant to be coded in the system under “CAAP”
1.16 : Home Equity Loan Maximiser Program:

Background: In the line of diversification of product basket of Home Equity, another High NIM product ‘Home Equity Loan
Maximiser program’ is being introduced. This product is an addition to the normal home equity loan and will be available to
the customers at the time of boarding of HE loan. The idea behind the product is to board those eligible customers whose
loan amount eligibility is restricted due to less property value but financially they are Eligible for Higher Loan amount. The
product is useful to cash rich and high net worth customers who are willing to pay high interest rate for additional funding.
The risk under this product will be mitigated by high yield, shorter tenure and amortization of loan during the period of three
years. The loan will be linked to the original HE loan.
Product Parameters:
1. The maximum loan amount should be restricted to 30 lac.
2. The variant is applicable to all residential and commercial properties. Alternate collateral to
be excluded.
3. Loan eligibility under this variant can be calculated under any program in the policy.
4.The Tenure on Topup portion should be Restricted to 3 yrs.

5.The Additional loan amount should be restricted to 15% of the original loan amount Approved at applicable LTV.
6.This program is only for the retail segment up to 300 lac
7.The rate on the top up portion should be in range of 3-5% above RAAC policy
8.DBR would remain same as is allowed under program variants. No deviation in DBR on account of additional top up.
9.The Program would exclude caution and Negative profile
47 Portfolio Triggers/ Review & monitoring:
 Monthly disbursals should not exceed 10% of the increment disbursals of last month.
 30+ Delinquency level not to exceed 1%.
 Portfolio under this product to be reviewed after 12 months of its launch or on reaching 100 cr of gross
disbursement - whichever is earlier
CONFIDENTIAL 47
TAT
FinancialCapitale
Services Ltd.
Product Code:
All cases done under this variant to be coded in the system under “HEMX”
1.17 Income and Ownership Pattern:

Ownership Income
Husband Wife Husband + Wife
Husband Y Y Y
Wife Y Y Y
Husband + Wife Y Y Y
Ownership Father Son Father + Son Father + Son + Son + Daughter
Daughter in law in law
Father Y N* N* N* N*
Son Y Y Y Y Y
Father + Son Y Y Y Y Y
Father + Son + Y Y Y Y Y
Daughter in law
N * - Yes if sole
child
Father + Father + Daughter + Son
Ownership Father Daughter
Daughter Daughter + in law
Son in law
Father Y N N N N
Daughter Y Y Y Y Y
Father + Daughter Y N N N N
Father + Daughter + Y Y Y Y Y
Son in law Mother + Son + Son + Daughter
Ownership Mother Son Mother + Son
Daughter in law in law
Mother Y N* N* N* N*
Son Y Y Y Y Y
Mother + Son Y Y Y Y Y
Mother + Son + Y Y Y Y Y
Daughter in law
N * - Yes if sole
child
Ownership Mother Daughter Mother + Mother + Daughter + Son
Daughter Daughter + in law
Mother Y N N Son in law
N N
Daughter Y Y Y Y Y
48 Mother + Daughter Y N N N N
Mother + Daughter + Y Y Y Y Y
Son in law
Ownership Brother 1 Brother 2 Brother 1+ 2
Brother 1 Y N N
CONFIDENTIAL 48
TAT
FinancialCapitale
Services Ltd.
Brother 2 N Y N
Brother 1+ 2 Y Y N * - Yes if units
are separable
Ownership Brother Sister Brother + Sister
Brother Y N N
Sister N Y N
Brother + Sister N N N
1.18 Approved list of Institutions:

Repayment Track Record
• All Scheduled commercial banks,

• All Foreign banks,
• All Public sector /nationalized banks
All the repayments should be either PDC backed or ECS and should be in the form EMI’s only. We cannot fund the
customer based on cooperative bank tracks. For loans, track should in the name of individual or company name.
DEUTSCHE YES BANK GE MONEY
CITI AXIS BANK SUNDARAM FINANCE
BARCLAYS IDBI BANK LIC HSG FINANCE
SBI AMEX RELIANCE MONEY
SCB CANARA BANK RELIGARE
ABN ING VYSYA TATA MOTOR FINANCE
HSBC HDFC BANK INDIA BULLS
ICICI BNB PARIBAS Mahindra & Mahindra
HDFC Any other Nationalised bank.
KOTAK MAHINDRA BANK
Balance Transfer ;
All the repayments should be either PDC backed or ECS and should be in the form EMI’s only. We cannot fund the
customer based on cooperative bank tracks. For loans, track should in the name of individual or company name.
49
All scheduled / Nationalized banks and NHB approved NBFCs would be acceptable.
CONFIDENTIAL 49
TAT
FinancialCapitale
Services Ltd.
1.19 Other Parameters:-
Cheque Return  If there is a Emi cheque return and it is due to technical reason and the same to be
due to technical confirmed by the bank statement by checking the account balance on the day shall not
reasons be considered as bounce.(if it is due to insufficient funds, referred to drawer to be taken
as a bounce)
 PDC to be accepted form Salary account/Main Business Account. In case of Surrogate

Loan PDC to be accepted from same account from where EMI of loan considered in
calculation is getting cleared.
 ECS – ECS mandate as per the process rolled out by operations.
PDC only from For ECS cases, 1 ECS registration Cheques (cancelled) and 1 undated EMI
core banking list Cheques for every 6 months for the tenor of the loan to be taken. (for e.g. 2
EMI Cheques if the loan tenor is 12 months, 4 EMI Cheques if the loan tenor
is 24 months and so on).
PDC should be in favor of “Tata Capital Ltd.”.
If any one of the co-owner is not falling within the defined age parameters, affidavit to collected
Co-owner age from the concerned applicant with joint sign from all co-applicant. These cases to be approved
norms not met at Credit Head only
Due Date of PDC 3rd & 9th of every month
1.20 Caution and Negative Profiles

List of Negative - Politicians.
profiles. - Non reputed NGO’s.
- Small time STD / PCO outlets/Video Parlors
- Private money lenders
- Lawyers (except solicitor firms, sales tax/ income tax lawyer)
- Journalists
- Security / Police personnel
- Gambling business / Massage parlors
- NRIs / Business run by NRIs
- Firms / companies dealing in plantation / aquaculture / chit funds / nidhi money lending
- Cybercafés / Internet companies/Beauty Parlors.
- Lottery business / any gambling business
- Video library owners / video parlors
- Multi level / network marketing business
- Astrologers / purhoits
- Small time - Money exchangers
- Defense equipment – manufacturer / trader / dealer
50 - Offensive & warfare products
- DSA’s / verification agencies / Collection agencies / repossession agencies
- Nurses.
Caution profiles
CONFIDENTIAL 50
TAT
FinancialCapitale
Services Ltd.
Large Courier Companies

Film personalities – TV and Film Industry (actors / artists / producers / directors) / film
distributors.
Homeopathy and Ayurvedic
Owners of Finance companies.

Owners of Wine shops and exclusive bars.
Security firms.
Employee of software/BPO /IT companies
Builders / Real estate developers
Waste / scrap merchants
Cable operators
Management consultants – non Professional consultants
Caution Profile :
Manpower consultants / placement agencies / labor contractors/ civil contractor.
Tax consultants (non qualified)
Hatcheries.
Antique dealers
Employees of Large Travel and Tour operator.

Media Companies
Small Software Companies.( Small Software Companies should have minimum an employee
strength 50 people or total turnover less than 50 crores).
Contractors
Waste/scrap merchants excluding iron.
1.21 Credit Checks: The Credit checks required are enlisted as follows:
Proof of Age Required for Applicant/ Co Applicants
ID proof in the form of Passport, Driving license, Election voter ID card, PAN,
Proof of ID
Bankers certificate
Banker’s verification, Passport, PAN card, Driving license, Property registration

document,.
51 Signature Proof /Signature
verification
Processing fee cheque from operating account.
CONFIDENTIAL 51
TAT
FinancialCapitale
Services Ltd.
Signature in PF cheque, PDC should match with application form.
Residence proof reqd in form of Utility Bill, Voters card, Property registration
Address Proof documents, Property tax receipt or Vehicle registration document only for main
applicant.
Last 6 months for Main applicant & Last 3 months for Co-applicants if income is
considered and also if bank statements of applicant are not sufficient for servicing
EMIs.
Bank Statements
Bank statements not to be more than 30 days from the date of application.
It is mandatory to verify the account from where PDCs are provided.
End Use letter The same to be embedded in application form
Data check Dedupe & CIBIL check is mandatory for all cases at the time of login
The same to be conducted through an empanelled agency for all cases and for all
Income Tax returns applicants/co applicants whose income is considered. This check will be conducted
(ITR)/Bank statement check on 2 years ITR Bank statements to be checked from where PDCs of the customer
are given.
CPV/TVR( contact point

CPV to be conducted through an empanelled agency for residence and office.
verification/
TVR to be done in-house by tele-calling team managed by credit.
Also seeding to be done for cases on a sample basis by the underwriting team.
Tele verification)
The same to be vetted as well as checked by an empanelled Lawyer prior to

Property Documents
disbursal.
 The same to be conducted by empanelled valuation agencies. For all loan

amounts, 2 valuations to be done and lower of the two to be considered for
calculations. Each location to have a minimum of 3 empanelled valuers.
 Valuations to be not more than 2 months old at the time of approval and 90
Property Valuations
days at the time of disbursal.
 Loan tenor not to exceed residual age of the property at the time of Sanction
 No loans to be provided against heritage and cessed buildings.
 Also Seeding to be done for valuations on a sample basis by the
underwriting team.
Detailed guidelines to be issued by compliance. The same to be completed prior to
KYC Norms
disbursal
Personal discussions with the customer to be conducted by Credit

Personal Discussions
department/Approved set of business people defined Credit & Risk Head.
All cases to be reviewed by the RCU and verification checks to be done by RCU
52 RCU Check
team on a sample basis. For all cases RCU check would be mandatory.
Disbursal kit to consist of

Disbursal Kit
- Accepted sanction letter
- Loan agreement
CONFIDENTIAL 52
TAT
FinancialCapitale
Services Ltd.
- Copy of legal report

- PDC/ECS
- Valuation report
- Original title papers and documents as mentioned and vetted by the lawyer.
- Disbursal receipt
1.22 Credit Verification Process:

 Telephonic Verification: Telephonic verification for all applicants is done by designated officials on the
telephone numbers provided in the application form. A landline/WLL (3 months old) telephone is mandated at
the residence or office of the applicant. Proof of the same is required. A maximum of 2 tries can be done on a
telephone no. Through Telephonic verification we are able to take details on the assets considered for
depreciation, any other obligation, business continuity, structure and usage of the collateral, end use of the loan
and number of earning and dependent members in the family and alternate source of income. Also both
residence address and office address are verified. All this information enables us to get a fair picture of his true
income and liabilities.
A TVR is marked positive if:
A contact is established at residence as well as office.
Details as mentioned in the TVR format are provided.
The details mentioned during the TVR tallies with the same in the Application form.
 Contact Point Verification (CPV): CPV is done by approved CPV agents on the format. CPV is done for all
applicants and co-applicants at the residence and employment address. For Restricted areas CPV’s are not
initiated without a credit signoff. The CPV is qualified as positive, negative or referral based on the information
gathered at the time of verification. Residence CPV focuses on the living standard, neighbour feedback,
negative information, loans and occupancy status of the residence (since majority of the collaterals are self
occupied properties.) Office CPV focuses on the end use of the loan, business activity, neighbour feedback on
the business, verification of documents.
Personal discussion:
 For all cases, personal discussion at the customer’s office is mandatory.. The objective of the PD is to
understand the business of the applicant, his own knowledge about his business, (his vendors, customers etc),
end use of the loan, customer profile, and any risks perceived.
Program/Pr
Locations Existing Norms Revised Norms
ofile
SENP – Normal All locations except Mumbai, PD by CPA upto 25- upto 30-lacs : PD by CA agency ; >
Income & Gross Delhi, Pune, Kolkata, Chennai, lacs ; > 25-lacs by 30- lacs upto 300-lacs : PD by Credit
Margin Hyderabad & Bangalore Credit Mgr Mgr ; > 300-lacs : PD by RCM
upto 50-lacs : PD by CA agency ; >
SENP – Normal Mumbai, Delhi, Pune,Kolkata, PD by CA agency
53 50- lacs upto 300-lacs : PD by Credit
Income & Gross Chennai,Hyderabad & upto 25-lacs ; > 25-
Mgr ;
Margin Bangalore lacs by Credit Mgr
> 300-lacs : PD by RCM
PD by CA agency
Upto 25-lacs : PD by CA agency ; >
SENP (SIP/LIP) All locations upto 25-lacs ; > 25-
25- lacs : PD by Credit Mgr
lacs by Credit Mgr
CONFIDENTIAL 53
TAT
FinancialCapitale
Services Ltd.
Credit Manager may decide to do Personal discussion with any Customer based on
his observations/assessment of the case
 PD by CA agency to be be through empanelled CA agency only. In all such cases,

 Customer to be met at least once by TCFSL/TCL staff and observations to be documented in file
 PD observations to be documented in the PD format for all cases
 Any waiver of PD norms to be treated as Policy deviation
 PD Visit to done only in office/ factory premises
Property Visitation Guidelines:

The table below summarises the property visitation guidelines for Home Equity business :
Loan Slabs Locations applicable Visitation by

All locations except Mumbai, Delhi, Kolkata,
Upto 50-lacs Credit Manager/ Sales Mgr
Chennai, Hyderabad & Bangalore
Mumbai, Delhi, Kolkata, Chennai, Hyderabad &

Upto 100-lacs Credit Manager/ Sales Mgr
Bangalore
All locations except Mumbai, Delhi, Kolkata,

>50-lacs upto 300-lacs Credit Manager
Chennai, Hyderabad & Bangalore
Mumbai, Delhi, Kolkata, Chennai, Hyderabad &

>100-lacs upto 300-lacs Credit Manager
Bangalore
> 300-lacs all locations RCM
Visitation by Sales Manager to be done in situations where Credit Manager is not able
to do the same.
Two valuations for all Home Equity transactions would continue to be done
irrespective of loan amount.
 ITR and Bank Verification: For all applicants and co applicants, ITR and Bank verifications will be conducted
through an empanelled agency.
 RCU check: All cases to be reviewed by the RCU and verification checks to be done by RCU team on a sample
basis. For all cases RCU check would be mandatory. The verification is done on ITR, business profile,
residential status etc by an agency, which is appointed by the Fraud control unit for each location. This agency
is different from the one carrying out the checks on a regular basis for the company
 INTERNAL DEDUPE: Dedupe is done for all cases at the time of login. If customer has any or no repayment
history with us which is satisfactory then the dedupe is flagged as positive else it is negative. For negative
54 dedupe a deviation has to be raised.
 QUALITY REVIEW: The quality review team will perform sample file reviews on a regular basis to ascertain
adherence to credit process, policy and underwriting standards.
CONFIDENTIAL 54
TAT
FinancialCapitale
Services Ltd.
 CIBIL : Cibil to be mandatory for all applicants and co-applicants.
1.23 Broad Guideline on Technical Valuations: _

Type of Structures:
Following types of construction can be financed
 RCC Framed Structure: Construction made with RCC columns & beams, RCC slab, Brick wall made and
plastered by cement mortar on both the sides. All properties accepted as collateral will have to be fully complete
at the time of approval
 Load Bearing Structure: Construction made without RCC columns & beams but with RCC slab, wall plastered
on both sides by cement mortar. All properties accepted as collateral will have to be fully complete at the time of
approval
Geo limits: Funding of property as per city limit norms as specified and finalized in consultation with Sales, Credit &
Collections, which will primarily be the Municipal limits for each city. List of permissible geo-limits and restricted areas to
be notified from time to time
Technical Appraisal is -
 The process of verifying physical existence of property

 Confirming the transaction and assessing the quality, market value of the property
 Confirming all the necessary permissions from the concerned authorities are obtained and that the
development of the project / property is in accordance with bye-laws
 To assess and progress of the property
 To assess market value of the property
 To assess availability and accessibility of infrastructure
Guidelines
 All valuation should be based on area as per sale agreement/ physical measurement by valuer only
 Approved Plans to be checked, where-ever applicable, as per policy.
 Residential status of the property to be reported – whether the property is self occupied, vacant or tenanted
 Any factors directly or indirectly affect marketability & saleability of the asset to be reported
 Any transfer, sale restrictions of the property to be checked & reported
 No value to be assigned to moveable furniture
 Two photographs – one internal of the unit & one of external building.
 Current condition & current age of the property with residual age to be reported
Applicant/Collateral outside GEO limit:

55
Based on business recommendation and market feedback, we are proposing to open funding to applicants/collateral
outside geo limit subject to below parameters:
 Proper empanelment of Vendor and preferably vendors who are already empanelled with TCHFL location
 High NIM with WIRR of 1% above the RAAC policy
CONFIDENTIAL 55
TAT
FinancialCapitale
Services Ltd.
 The location should be jointly approved with National Collection Manager.

 Collateral should be residential/Commercial only
Circular no 422: Guidance note on Original Verification (OSV) of

customer documents:
Current Process: currently for all documents given by customer, customer self attestation is done and original
verification is done by the sourcing channel.
Objective of the Note :
the objective of the note is to
 Define guidelines on the documents ( KYC & Non KYC) on which original verification needs to be done by
sourcing channel
 Define guidelines on the entity that should be doing the verification of the customer document
Background for the change in the process :
As per mandate of the regulator all KYC documents given by the customer should have self attestation of the customer
and the verification of the original should be done by the sourcing channel. The Original verification of the non KYC
documents (Income, Banking, repayment tracks, RC books, various Statutory returns) poses a challenge as most of
these documents are not available in original form OR these documents are not readily available with the customers for
verification. This leads to holding up of files for logins, and also manipulations and misrepresentation by sourcing channel
s for logging in the files. There is a need to formalize guidelines for Original verification of documents by sourcing
channel which is in line with the market practice and also build in mitigants for independent verification of documents.
Proposed GRID for self – Attestation and Original Verification (OSV)
Requirement of
Requirement of Original
Parameter customer self Who should do OSV
Verification ( OSV)
attestation
KYC documents
Sourcing Channel : DSA
/ DDSA / CRE / Sales
CFAB YES YES
Manager / Credit
Manager
Non KYC documents :Customer Financials/ Banking related documents, ITRS / VAT, Audited Financials if any / etc.
Others : employment proof / connectivity prrof / surrogate product docs / existing loan track records etc
CFAB - All products

YES NO Not Applicable
including HE
Only OSV required to be done

on the customer financial
56 Gross margin prodcut > Credit Manager at the
YES related documents - Various
2 Crores time of PD
returns filed ITR / VAT, Audited
financials Etc.
CONFIDENTIAL 56
TAT
FinancialCapitale
Services Ltd.
 For cases wherein personal discussion are done by credit manager additionally OSV to be done by
Credit Manager on KYC and Non KYC document.
 RCU will be as per respective product credit policy / RCU policy wherever applicable.
Negative Properties:
o Properties belonging to HUFs
o Properties under construction
o Title deeds pending with registrar
o Farmland
o Cinema Halls
o Godown
o Properties located outside India
o Chawl
o Pagdi
o Gala /industrial estate ( industrial estate with RCC structure can be funded)
o Banquet halls
o Agricultural Land
o Farm land
o Old Age Homes and Orphanage
o Guest Houses
1.23 a Property Valuation Report will contain the following :-

A valuation should cover the following aspects
1. Address as per the property papers

2. Address as per the municipal records
3. Area classification
4. Proximity to civic amenities
5. Type of collateral: Flat, bungalow, floor etc
6. Land area
7. Saleable area
8. Any comments on the area, property, bye – laws, trends or usage
9. Usage: self occupied/ rented / commercial
10. Prevalent land and construction rates
11. Details of interiors in terms of rooms, finishing, wood work, sanitation etc
12. Break up of value as per usage
13. Final total value
All valuations are submitted in the standard format.
(Detailed valuation guideline note and formats will be maintained at country level with relevant approvals)
57
CONFIDENTIAL 57
TAT
FinancialCapitale
Services Ltd.
1.23.b. Broad Guidelines on Legal Appraisal:

Mandatory Legal Search Report (LSR) / Opinion from the empanelled Advocates will be taken prior to approval.
Legal Search Report covers the entire transaction chain of the collateral. If the title is not clear then the case gets
rejected. Lawyer visits the office of the sub- registrar and checks the documents against the records for any lien, fraud or
any other sale transaction which customer has not reported to us. In a few locations search is not done and only opinion
is given.
Legal report should cover the following points
1. Address as per the property papers

2. Name of the owner (s)
3. Type of property: Leasehold / freehold
4. Transaction history & Search with SRO for 12 years
5. Documents that are must for creating a mortgage
6. Documents that are required post disbursal
7. Recommendation on type of mortgage: Registered
8. Recommendation whether the applicant/ co applicant has a clear, marketable title to the property or not.
9. General Indemnity to be taken.
Property Types
Collateral to be taken as approved by local municipal authorities and recommended by empanelled lawyer.
Types of Ownership
 Sole Ownership – When the property is owned by one individual, that individual is called to be the sole
owner of the property. He has sole discretion over the transfer of ownership.
 Co-ownership - Co-ownership is where a property is owned by two or more persons and each of the said
persons are a co-owner of the property. All owners to be brought into the loan structure as Co –applicants
1.24 Deviation Approving Authorities
Branch Credit Manager
Regional Credit Manager
National Credit Manager / Product Risk Head/ Manager
CFAB Business Head / Risk Head.

58
Head Risk TCFSL
CFO, TCFSL
CONFIDENTIAL 58
TAT
FinancialCapitale
Services Ltd.
No parallel loans to be given to individuals and non –individuals.
Second loan or top –up can be given only after 9 months of servicing the first loan.
1.25 RAAC Norms (Risk Assessment and Acceptance Criteria):
RAAC norms: Proposals meeting all the norms without any deviation (excluding pricing deviations).
A proposal should meet the below mentioned RAAC norms/ criteria, to qualify as a RAAC proposal. Which are as
follows?
 Approved borrower profile

 Meet the Income/ and Tenure norms
 All credit norms mentioned in this policy
 Dedupe and CIBIL checks are positive
 FI and tele verification are positive
 Satisfy the KYC norms as defined.
 All files meeting the RAAC shall be approved by the credit manager or above of the respective locations on a
Credit Approval Memo/ Disbursement Memo, as per the approval authority matrix circulated separately.
 Files not meeting RAAC norms to be approved by the respective approving authorities as defined in this note.
1.26 RCU and FI Deviation Matrix

i. Negative report on RCU
The RCU team conducts fraud prevention and detection on the loan proposals either by sampling or screening. They
submit the findings in a report to the local CPA / Credit managers. These reports could highlight the following types of
concerns with regards the loan proposals:
a) Fraudulent documents (forged / fabricated bank statements, proofs, IT returns etc)
b) Information mismatch between two sets of information / documents
c) Chronic defaulters
d) Special profile A / special profile B including profile mismatches
 Points (a), (c), and (d) [Special profile A] above are extremely alert indicators and as such all proposals with a
negative RCU report highlighting any of these reasons must be declined.
 Special Profile B [point (d) above] can be jointly signed off by NCM and Product Risk Head/ Manager, subject to
norms as defined in the policy.
 Reasons b cited above is more subjective in nature and deviation approvals for the same may be taken at the
regional credit manager (RCM) and above level after taking requisite steps to mitigate envisaged risk.
59 Credit Refer cases
RCU Refer deviation can be approved at RCM level on lines of RCU CNV (could not verify) cases. The following RCU
sampling methodology would be applicable:
1. For all SENP cases the RCU sampling to be done only for the main bank account and the bank account through
CONFIDENTIAL 59
TAT
FinancialCapitale
Services Ltd.
which the repayments are made by the applicant. The other supporting bank accounts to be screened.
2. For all the SENP cases, the ITR’s of the individuals whose income has not been considered is to be screened only
along with the other documents in the file and theITR’s of the company/firm whose income has been considered is to
be sampled.
3. For all salaried cases, only the salary account needs to be sampled and even if the ITR’s have been submitted in the
file, the same are to be screened.
The sampling size is stated in table below:
Category Sampling %
Salaried 25%
SENP/SEP/NI < = 1.50-crs loan 50%
SENP/SEP/NI > 1.50-crs loan amt 100%
Caution/ Negative profiles 100%
The above changes are applicable only for those locations which have completed one full year of operation – date of
booking of 1st contract to be taken as the start date. For locations having < 1-yr vintage, existing norm of 100%
sampling would be applicable. In addition to the above, we would be required to conduct:
1. Profile check of applicants (through RCU) for all cases > 150-lacs value
2. RCU check of latest year financials (P&L and B/s) for all cases > 150-lacs value under Gross Margin programme The
documents in the file (including the documents stated above) can be sampled by the RCU agency in case of any trigger
or on the request of Credit Manager.
ii. Reasons for negative field verification
Residence Field Verification
Category A Category B
Reason for negative Field Deviation Reason for negative Field

Deviation authority
Verification authority Verification
NCM subject to a secured

Residence cum office (where no Defaulter/ Bad market
NCM repayment track record of
business setup seen) reputation
12 months.
Negative Area, NCM Person does not exist No Deviation
Address not traceable/

Outside geographical limits RCM No Deviation
does not exist
Negative neighborhood
60 Applicant or family member not met RCM NCM
check
Door locked, subject to positive resi and

RCM
office TVR done by CM.
CONFIDENTIAL 60
TAT
FinancialCapitale
Services Ltd.
Profile mismatch RCM
Poor living conditions RCM
Door Locked/ Entry Not Allowed but

CM/ACM
TPC is positive
iii. Office Field Verification
Category A Category B
Reason for negative Field Deviation Reason for negative Field

Deviation authority
Verification authority Verification
NCM subject to a secured

Residence cum office (where no Defaulter/ Bad market
NCM repayment track record of
business setup seen), reputation
12 months.
Address not traceable/

Non targeted Area, NCM No Deviation
does not exist
Applicant does not work

Outside geographical limits, RCM No Deviation
here
Negative neighborhood
Applicant not met RCM NCM
check
Entry not allowed, subject to positive

CM/ACM
TVR done by CM.
Designation incorrect, subject to

positive residence or office TVR done RCM
by CM.
No business activity /infrastructure seen NCM
Profile mismatch RCM
iv. Tele-verification (TVR)
CM/ACM if TVR
61 done by
Resi and Office TVR
CPA/CM is
positive
CONFIDENTIAL 61
TAT
FinancialCapitale
Services Ltd.
1.27. Dedupe Policy:
Cibil Policy:-
1.27 a CIBIL Deviation Matrix

Product Risk
Policy Parameter Credit Manager Level RCM Level NCM Level Head
Allowed at CM level upto
10k if OD cleared by
customer & clear RTR of
0.5 times EMI for 12-MOB Allowed up to 25k Allowed upto
CIBIL - Credit Card OD any amount Allowed
Allowed at CM level upto Allowed at RCM
10k with settlement letter level where last
& Clear RTR of 0.33 payment date is >
times EMI for 12 MOB 2yrs subject to
clean RTR of 0.33
times EMI for 12
MOB
CIBIL - Credit Card
W/o Allowed Allowed
Allowed at CM level upto

7k (i) supported by
RTR/NOC of same loan
with paid receipt of OD
amt if last payment date is
< 1-yr (ii) supported by
RTR of 12-MOB of value
=> loan applied, if last
payment date is > 1-yr Allowed up to 25 K Allowed upto
CIBIL - Loan OD any amount Allowed
To be allowed at
RCM level only if
supported by clean
RTR equivalent to
Loan w/o during
that time. Also, w/o
of loan should be >
1 year old and
62 allowed for w/o where last adequately
payment date is > 3-yrs explained
CIBIL - Loan W/o old Allowed Allowed
CONFIDENTIAL 62
TAT
FinancialCapitale
Services Ltd.
Allowed at
NCM level
ST
mandatory
Allowed at RCM and positive
both applicant as well as level ST mandatory RCU check
co-applicant/s CIBIL has and positive RCU of Pan card
a negative score or there check of Pan card and ITR for
is “no match found and ITR for 2 years 2 years
CIBIL SCORE -1 Allowed
Note
CIBIL has to be done for applicants and co-applicants
1) In case of overdraft/CC limit based lending, any interest outstanding has also to be considered as overdue
2) Any match other than those mentioned in Point 1 which is more than 36 months old from the close date need
not be considered as a negative match
Bureau decision can have the following values:
i. Negative - if any of the above reject rules are applicable. Cases rejected due to negative bureau check have
to be captured under a separate reject code.
ii. No Match – if there is no match on the bureau for the case. Such cases to be decisioned at RCM level
iii. Positive – if there is a match on the bureau for the case, the track record is greater than or equal to six
months old, and the match is not negative
Enquiries: If this section in the CIBIL report shows that the customer has applied for 3 or more products/loans (retail
assets or cards) in the last 2 months, then the underwriter should understand from the applicant whether these loans
were approved or rejected. In case, a loan was disbursed then the EMI of the loan would be reflected in the Bank
statement and the same should be factored in the DBR computation. In case, such a loan enquiry has been rejected,
further details to be understood from the customer / market network.
1.27 b. External Dedupe – (FI dedupe)

Scenario 1: PDC Loan Default Catch
0-30 DPD Once in Credit History with ‘000’ in Last Mth – Allowed if Loan Start Date >6M.
>2 times 0-30 Entry in History String – Reject.
>60 DPD entry in History String – Reject.
Any match , which is more than 36 months old from the close date, then these matches need not be considered
63 as a negative match.
Scenario 2: Credit Card Default Catch –
1. Card catches before Dec 2004: Ignore incase the customer has a 12M clean PDC backed repayment in last 24
months
CONFIDENTIAL 63
TAT
FinancialCapitale
Services Ltd.
2. Card catches post Dec 2004:
Default amount <=5000
Allowed under surrogates if any other/same Live Credit-card statement provided with no late/ immediate payment (For
income program, applicant needs to have a repayment in the past for 12 M)
If Default Value >5000/- & <= Rs.15, 000/-
Allowed if applicant has Clean PDC backed loan repayment of at least 12 EMIs on a loan >3.0lk with No Bounce post the
default. No default in last six months on card
If Default Value > Rs.15, 000/-
Allowed if no default in last six months and 18M clean loan repayment history on a PDC backed loan for >7.50lk
Any match , which is more than 36 months old from the close date, then these matches need not be considered
as a negative match.
1.27 c. Internal Dedupe (TMF / TCFSL database)

Scenario 1: Previous Loan Tenor < 12 M (Any Product)
1 Bounce for Completed 12 months Loan Allowed, to be paid before the Loan was 30+ DPD (No Bounce in Last six
months)
(To be verified with PDC & Receipt Details).
Scenario 2: Previous Loan Tenor > 12 M (Any Product)
1 Bounce on each completed 12 M of repayment Allowed, to be paid before the Loan was 30+ DPD
(E.g. If 36 EMIs paid, 3 Bounce Allowed, Bounce can happen anytime in tenor except last six months)
If the Account was 30+ DPD in any of the Period - Reject
Special Cases
Scenario 1: Family Default
If the Customer has a PDC back repayment on Personal Name of 12M - Allowed
If the Customer do not have loan track (No Other Product) on his personal name – Reject.
Scenario 2: External De-dup Card Catch with no Details Available

64
If the Customer has a PDC backed repayment on Personal Name of 12M - Allowed
If the Customer do not have a PDC backed track on his personal name – Reject.
Scenario 3: Settlement Cases on Credit Card
CONFIDENTIAL 64
TAT
FinancialCapitale
Services Ltd.
Settlement is equivalent to Write-Off cases amount lesser than 10 k is allowed - If the
Customer has a PDC backed repayment on Personal Name of 18M for Rs. 7.50 lakhs.
Any match, who is more than 36 months old from the close date, then these matches need not be considered as
a negative match.
1.28 Verifications:
Physical verification by external agency must at the current residence of
Residence Verification
applicant
Physical verification by external agency must at property which is to be

Property verification
mortgaged for HE Loan
Physical verification by external agency must at the office address as given in

Office Verification the application form. The same is not required in case of PD being done by the
credit manager AT CUSTOMER’S OFFICE only
Residence tele verification Telephonic verification must at residence of references (both)
Telephonic verification must at office telephone nos. as given in the application

Office Tele verification
form
CD Rom check CD ROM check to be done for all the telephone nos.
Internal De dupe All the applicants must clear the internal de dupe.
External DE dupe All the applicants must clear the external de dupe:- FI/appointed agency
CIBIL Positive CIBIL check for all the applicant and co-applicants
Once the RCU set up is in place at a particular location then all the files must be
RCU (Risk containment unit) passed through the RCU unit who will sample certain percentage of files for
verifications / profile checks
Following document verifications to be done for all the cases:

Documentation verification
- ITR verification
- Bank Statement verification
Personal Discussion Personal discussion is must for all the cases as per Personal discussion grid
As defined for every approved location separately. The list with the credit
Geo Limits & Approved locations
manager will be the final list.
Last 2 Years ITR to be collected.

ITR Norms Latest ITR to be not more than 14 months old.
There should be gap of at least 6 months between 2 years ITR’s.
65
CONFIDENTIAL 65
TAT
FinancialCapitale
Services Ltd.
1.29 DEVIATIONS: To be addendum to the Policy and as amended from time to time.
Deviation Grid has been amended along with introduction of two new deviations to facilitate decision of higher number of transactions at
the Credit Level.
Any Deviation/s which is/are not part of the above stated deviations above would be signed off at Risk level as per the respective limits
outlined in the DOA.
S No Policy Parameter Credit Manager Level RCM Existing NCM Existing

Delegation Delegation
1 Min Income Norms Not allowed Allowed St to minimum Allowed

income >=1Lacs
2 Debt-Equity (for Not allowed Allowed upto 6 Allowed up to any level

Normal Income and (St to positive net worth)
Gross Margin
program)
3 Interest Coverage Not allowed Allowed upto 1.25 Allowed up to any level
Ratio (ICR) (For (St to positive cash profit
Normal Income and in last 2 financial yrs)
Gross Margin
Program)
4 Min yrs in Allowed for confirmed Allowed for confirmed Allowed

employment & employee at CM level for employee for job change
employment stability job change & total exp st total exp => 3-yrs; Exp
=> 3-yrs Tenure at RCM level for
Confirmed employee
working with Cat A
company and
professionally qualified
as defined in the list
66
CONFIDENTIAL 66
TAT
FinancialCapitale
Services Ltd.
5 Chq Returns - 2 per 12 months track 2 per 12 months track 3 per 12 months track
RTR(Excluding allowed at CM level for allowed at RCM level for allowed at NCM level for
Technical Bounce- live as well as loans live as well as loans live as well as loans
See Note) closed within last 6- closed within last 6- closed within last 6
months, if paid within months, if paid within months subject to
same month & supported same month (not for payment proof
by other clean RTR of cases under SIP)
0.5 times proposed EMI
for 12-MOB (not for
cases under SIP)
6 Banking norms : lower of 3% of total no of Allowed Allowed

Borrower issued transactions OR 3 in last
Cheque Returns (Non 6-months to be allowed
EMI cheques) (non RTR chq returns)
7 Banking norms : Chq 10-chq returns in last 6- RCM level deviation Allowed
Returns – issued to months OR 5% chq
Borrower by clients returns of total no of
Credit transactions
allowed at CM level
8 Banking norms : No allowed at CM level if RCM level deviation Allowed

of debits/credits avg bal > EMI & RTR of
0.33 EMI available
9 Internal Dedupe Negative Dedupe due to Allowed except where Allowed

wrong match to be Dedupe negative due to
allowed at CM level defaulter/declined
10 LTV- Normal & Gross Not allowed 5% deviation Allowed at 5% deviation Allowed at
Margin RCM Level only for NCM Level only for
SORP SORP
11 Number of Collaterals Not allowed Not allowed Allowed
12 DBR – Salaried 2% deviation allowed in 5% deviation allowed in upto 5% at NCM level

upto 75k salary bracket upto 75k salary bracket &
2% deviation allowed in
> 75k to 2-lacs bracket
67
13 DBR SENP /SEP/ Not allowed allowed upto 10% at allowed upto 20% at
Non Individual RCM Level for Normal NCM for Normal Income
Income
CONFIDENTIAL 67
TAT
FinancialCapitale
Services Ltd.
14 Residence CPV* Allowed at Credit Mgr allowed as per the CPV Allowed as per CPV dev
level if Stay & Address deviation matrix matrix
confirmed
15 Office CPV* Office & Applicants allowed as per the CPV Allowed as per CPV dev
working confirmed but deviation matrix matrix
entry not allowed –
Credit Mgr level
16 Residence & Office Allowed if TVR done by Allowed with positive Allowed with positive
TVR CPA/CM is positive TVR by CPA/CM TVR by CPA/CM
17 Contractibility - no Allowed only for Tata Allowed if respective Allowed as per CPV dev
landline phone at group employees physical CPVs are matrix
Resi/Office (one of positive OR Credit/ Sales
the two is compulsory officer's visit is positive ;
; post-paid mobile if CPV report -ive due to
should be available) address not traceable, no
such person exist, etc. it
is non-deviatable
18 Negative RCU Not allowed Not allowed Not allowed
19 ITR norm Not allowed Allowed at RCM Level if Allowed

2-consecutive ITRs filed
within 6-months but not
filed on same day
20 Clubbing of Income allowed as per Income Allowed Allowed

ownership matrix
21 No of Co-applicants Not allowed Allowed Allowed
22 No of deviations max 3-deviations allowed Max 5 deviations allowed Allowed

(excluding CPV/TVR (excluding CPV/TVR
deviation) deviation)
23 Negative Profile Not allowed Not allowed Allowed jointly with Risk
24 Caution profile Allowed at CM level for Allowed Allowed

cases where RTR of 0.5
times EMI is available
25 Horizontal Property Not allowed Allowed if Valuer Allowed

68 dev- Residential confirms FSI norms met,
low risk of demolition &
no road widening impact
CONFIDENTIAL 68
TAT
FinancialCapitale
Services Ltd.
26 Rental Credit in LRD Not allowed Allowed with 1-month Allowed with one month
cases rent credit for Cat A rent credit for CAT A and
company leases CAT B
27 Vacant/Rented Allowed for Residence Allowed for Normal Allowed

Property – HE property under Normal Income & GM
Income & GM programme with 5%
programme with 5% lower LTV than policy
lower than policy LTV
28 Residence Stability Not allowed Allowed upto 6-months Allowed

for Cat A & B co
employees
29 Max Age Norms - Upto 70-yrs with Son/s Allowed (at RCM level)
income considered being co-applicant upto 80-yrs with Son/s
applicants involved in business & if actively involved in Without son
income of age exceeding business coming as co- on loan ,
borrowers not > 33% of applicants allowed at
total income NCM level .
Subject to
other family
member/Le
gal heir on
loan
structure
30 Min Age norms Allowed upto 1-yr for Allowed Allowed

income considered
app/co-app
31 Income Ownership Brother/Spouse- Allowed only for the Allowed

Grid Brother/Spouse relationships which are
combination allowed at defined in the Income
CM level if staying as a Ownership grid specified
joint family or doing in the Credit policy
business together
32 Banking norms : Not allowed Allowed at RCM level if Allowed

average balance ABB is 0.30 times of
proposed EMI in last 6
months for repayment
account OR RTR of 12
MOB equal to 0.50 times
of proposed EMI
33 CIBIL - Credit Card Allowed at CM level upto Allowed up to 25k Allowed upto any amount
69 OD 10k if OD cleared by
customer & clear RTR of
0.5 times EMI for 12-
MOB
CONFIDENTIAL 69
TAT
FinancialCapitale
Services Ltd.
34 CIBIL - Credit Card Allowed at CM level upto Allowed at RCM level Allowed
W/o 10k with settlement letter where last payment date
& clear RTR of 0.33 is > 2-yr old. Subject to
times EMI for 12-MOB clean RTR of .33 times
EMI for 12 MOB
35 CIBIL - Loan OD Allowed at CM level upto Allowed up to 25 K Allowed upto any amount
7k (i) supported by
RTR/NOC of same loan
with paid receipt of OD
amt if last payment date
is < 1-yr (ii) supported by
RTR of 12-MOB of value
=> loan applied, if last
payment date is > 1-yr
36 CIBIL - Loan W/o allowed for w/o where To be allowed at RCM Allowed
last payment date is > 3- level only if supported by
yrs old clean RTR equivalent to
Loan w/o during that
time. Also, w/o of loan
should be > 1 year old
and adequately
explained
37 CIBIL SCORE -1 both applicant as well as Allowed at RCM level ST Allowed at NCM level ST
co-applicant/s CIBIL has mandatory and positive mandatory and positive
a negative score or there RCU check of Pan card RCU check of Pan card
is “no match found and ITR for 2 years and ITR for 2 years
38 2nd Loan within 12- Allowed for 2nd loan with Topup not to be allowed Allowed including top up
months 6-MOB track under within 12 MOB ; fresh HE within 12 MOB
Normal Income & GM loan on separate
collateral allowed after 6
months
39 Commercial Property Not allowed Not allowed Allowed

area less than norms
(NRP/HE)
40 Cash Rentals Not allowed Cash rentals upto 30% of Cash Rental upto 100%
main income can be of main income can be
considered subject to considered subject to
availability of lease
availability of lease
agreement and rental
assessment by Technical agreement and rental
70 assessment by Technical
Value
Valuer
CONFIDENTIAL 70
TAT
FinancialCapitale
Services Ltd.
41 Residence Cum Not allowed Allowed for all profiles Allowed

Office except Negative &
Caution profile as stated
in Policy
42 Higher LTV under LIP Not allowed 5% Additional LTV on Apart from LIP , 5%
Program and Banking SORP and SOCP only in Additional LTV on SORP
program LIP under Banking
43 Higher DBR under Not Allowed 5% Additional DBR in 5% Additional DBR in

Surrogate Surrogate Program Surrogate Program
44 Higher LTV- Not Allowed 5% deviation over and 5% deviation over and
Commercial property above RAAC norms above RAAC norms
45 Approved Sanction Not Allowed Allowed if age of property Allowed

Plan not Available > 10 yrs
46 No of Credit Not Allowed Allowed subject to 24 Allowed

Transactions under credit transaction in
Banking Program Banking in a year
47 BT of Unapproved Not Allowed Allowed other than Co- Allowed other than Co-
Entities operative Banks operative Banks
48 Dip In Cash profit Not Allowed Allowed if dip<30% Allowed if dip<30%
49 Collateral-High Risk Not Allowed Not Allowed Allowed jointly with

of Demolition National Technical
Manager. In absence of
NTM, to be approved at
NCM Level
50 Collateral-Medium Not Allowed Allowed jointly with Allowed jointly with

Risk of Demolition National Technical National Technical
Manager. In absence of Manager. In absence of
NTM. to be approved at NTM, to be approved at
Risk level NCM level
51 Collateral-Low Risk of Not Allowed Allowed jointly with Allowed jointly with
Demolition National Technical National Technical
Manager. In absence of Manager. In absence of
NTM,to be approved at NTM, to be approved at
71 RCM Level RCM Level
52 HE-Commercial-High Not Allowed Allowed upto 15 yrs in Allowed upto 15 yrs in

Tenor case of SOCP case of SOCP
CONFIDENTIAL 71
TAT
FinancialCapitale
Services Ltd.
53. Collateral at under Not Allowed Not Allowed Allowed if Completion

construction stage- stage >90%
Residential and
Commercial
54 OGL- Not Allowed Not Allowed Allowed jointly with

Collateral/Applicant National Collection
Manager
55 Higher LTV-HE Not Allowed 5% Deviation Allowed 5% Deviation Allowed

Maximiser Program over RAAC Norms over RAAC Norms
56 Latest year Filed Not Allowed Not Allowed Allowed

Financials as per the
IT Act to be
considered for loan
eligibility
57 Loan tenor not to Not Allowed Not Allowed Allowed
exceed residual age
of the property at the
time of Sanction
58 Deviation Under Not Allowed Not Allowed Not Allowed
Alternate Collateral
Program
59 Deviation on number Not Allowed Not Allowed Allowed

and nature of account
under Banking
Program
1.30. Portfolio Mix:-

In order to have the right blend of portfolio in numbers, the share of each product has been defined, which is as follows:-
i. Deviation mix:-
Particulars % Mix
Normal Loans 75%
Loans approved with Policy deviations 25%
72
This has to be monitored on a monthly basis; locations deviating the same, further loan approvals
with deviations have to be stopped until they reach 75- 25% proposition.
CONFIDENTIAL 72
TAT
FinancialCapitale
Services Ltd.
ii. Program Mix
Existing Actual
Proposed Mix
Existing Level
PROGRAMMES Mix
Normal Income/ LRD 60% 63.37% 50%
Gross Margin/Gross 23.78% 25%

Receipts 30%
Banking product/ SIP* 1.49% 10%
2.5%
11.36% 15%
Liquid Income Program 7.5%
Property Type Mix

PROPERTY TYPE % Mix
Commercial Property other than

35%
LRD
LRD 15%
Residential 50%
Note: Policies relating to operating procedures, legal evaluation, technical evaluation rate and
processing fees to be followed as per Branch Operating Manual.
1.31 Post Approval Review

Objective
The objective of the review is as follows:-
 To ensure loan portfolio quality through adherence to policies, standards and procedures
 To identify patterns of unacceptable credit decision & take appropriate corrective actions.
Credit Triggers:-
Period First year of operation
Quick Mortality( 0-6 Mob Delinquency) 2%

73
30+ 1.5%
90+ 1.25%
NPA 1%
CONFIDENTIAL 73
TAT
FinancialCapitale
Services Ltd.
Locations deviating the credit triggers will be reviewed. For locations which have crossed the benchmark, portfolio
segmentation to be done on the basis of programs, channels, loan amounts and pricing brands. The problem area to be
identified and necessary corrective actions mentioned below to be implemented.
Corrective Measures:-
1. Delisting the most delinquent channels.

2. Discontinue the program with higher delinquency.
Annexure: 1- Balance Transfer Execution

a) Pre Sanction documents for Balance Transfer
Sr. Document Requirement
1. Repayment Track One of the following documents is to be collected to establish the Repayment
Record Track Record (RTR):1. Bank statements for 9 months showing EMI repayments
of the loan been taken over OR
2. Repayment Track record / statement for last 9 months showing EMI from the
earlier HFC/Bank
b) Pre disbursal documents for Balance Transfer:-
1. Outstanding principal Must be on the letterhead of existing HFC/ Bank and must contain
statement
 Date
 Applicant and/or co applicant names
 Loan account number
 Outstanding principal amount
 Pre payment charges (if any) amount
 Any other dues (if any) amount
 Date on which the above amount must be prepaid
2. Property documents Prior to sanction, customer to submit a declaration –cum-undertaking of the legal
74 documents submitted to the HFC/ Bank.
Prior to Disbursal
CONFIDENTIAL 74
TAT
FinancialCapitale
Services Ltd.
 A list of documents from the HFC/ bank & photocopies of documents kept
with existing HFC/bank
3. Undertaking from Customer to submit this undertaking to TCFSL that the original documents will be
customer sent to TCFSL within 20 days from the date of disbursement
4. Irrevocable power of Required from the customer in favour of TCFSL. The POA has to be executed on
attorney stamp paper of the requisite value and should be duly notarized from a Notary
Public
c) Post disbursal documents for Balance Transfer:-
1. Receipt for The receipt issued by earlier HFC/bank to be obtained.

disbursal from
TCFSL
2. Loan clearance A mortgage release letter to be obtained by the customer from HFC/ Bank, stating no
from HFC/ Bank dues and release of mortgage on the property
3. Property Original title deeds as per the list provided in case of HFC /Bank
documents
4. Release of In cases where the previous HFC / Bank has created a registered mortgage / MOE
Registered /ROC charge on the property, the said charge would required to be cleared thru
Mortgage / MOE / necessary documentation.
ROC charge
wherever
applicable
Annexure 2 Format for end-use undertaking from the customer
(Date)
Dear Sirs,
75 \Sub: Application for Loan against Property
I, _______________________________________________ refer to the Application No. _______ dated

________________ submitted by me to Tata Capital Limited acting for itself and as duly constituted attorney for and on
behalf of TCFSL, hereinafter collectively (or singly as the context may require) referred to as TCFSL for availing of a
CONFIDENTIAL 75
TAT
FinancialCapitale
Services Ltd.
Loan Against Property (the Loan) from TCFSL.
As stated in the said Application Form, the said Loan is for the purpose of
________________________________________________.
I hereby represent, warrant and confirm that the aforesaid purpose is a valid purpose and is not speculative or illegal in
any manner.
I further agree, confirm and undertake that the purpose of use of funds under the Loan shall not be changed in any
manner during the tenor of the Loan; or that such change in purpose shall take place only with the prior written
permission of TCFSL
I agree that any breach or default in complying with all or any of the aforesaid undertaking(s) will constitute an event of
default under the Loan Agreement.
Thank you,
Yours sincerely,
Applicant
Co-applicant
Annexure 3-Industry Margins for Gross Margin product:
No Industry/Sector Sub Sector Manufacturing Trading Services

1 Agri Products Animal Products 6.80% 3.95% NA
2 Agri Products Coffee 16.16% 8.81% NA
3 Agri Products Edible Oils 9.88% 3.81% NA
4 Agri Products Fruit & nuts, dry fruit 9.68% 3.95% NA
5 Agri Products Groceries & Related 15.21% 14.52% NA
Products
6 Agri Products Poultry & Meat 9.70% 7.50% NA
Products
76 7 Agri Products Spices 17.91% 7.00% NA
8 Agri Products Starches 9.08% 8.50% NA
9 Agri Products Sugar 19.98% 3.00% NA
10 Agri Products Tobacco Products 8.74% 11.75% NA
11 Agri Products Vegetables, Fresh 17.70% 9.19% NA
fruits, roots and tubers
12 Automobiles 2 & 3 Wheelers 12.10% 13.33% NA
CONFIDENTIAL 76
TAT
FinancialCapitale
Services Ltd.
13 Automobiles Auto Ancillaries 9.14% 10.00% NA

14 Automobiles Auto Design NA NA 12.75%
15 Automobiles Cycle & Accessories 12.19% 6.00% NA
16 Automobiles LCV's/ HCV's 7.76% 5.44% 7.76%
(Commercial Vehicles)
17 Automobiles Passenger Cars 7.44% 9.77% 7.44%
18 Automobiles Tractors 9.52% 9.52% 9.52%
19 Automobiles Tyres 20.18% 9.86% NA
20 Broad line/ Multiline General Merchandise NA 8.60% NA
21 Cement Cement products & 12.90% 12.62% NA
asbestos products
(trader)
22 Chemicals Alkali's 18.01% 6.10% NA
23 Chemicals Carbon black 8.52% 4.89% NA
24 Chemicals Caustic Soda 6.00% 5.87% NA
25 Chemicals Chemicals ( not 15.10% 6.35% NA
defined elsewhere)
26 Chemicals Dyes and Pigments 9.17% 5.00% NA
27 Chemicals Fertilizers (all 14.35% 12.11% NA
categories)
28 Chemicals Industrial Gases 17.99% 14.30% NA
29 Chemicals Inorganic Chemicals 10.17% 6.00% NA
(Not Defined
Elsewhere)
30 Chemicals Organic Chemicals 12.35% 7.80% NA
(Not Defined
Elsewhere)
31 Chemicals Pesticides 11.12% 12.50% NA
32 Chemicals Petrochemicals 10.65% 7.20% NA
33 Chemicals Polymers 13.13% 6.92% NA
34 Chemicals Refractories & 10.11% 7.90% NA
intermediates
35 Computers Computer - Education NA NA 10.49%
36 Computers Computer - Software NA NA 17.17%
37 Computers Computers & NA NA 28.51%
Electronics - AMC
38 Computers Computers & 10.08% 8.99% 17.67%
Electronics - IT-
Hardware
39 Construction Ceramic Tiles & 12.42% 12.35% NA
Sanitaryware
40 Construction Construction NA NA 10.73%
41 Construction Construction 8.59% 4.00% NA
Equipment
42 Construction Construction Materials 13.35% 7.40% NA
43 Containers & Packaging 11.80% 9.45% 15.00%
77 Packaging
44 Durables Electrical Goods 8.80% 8.56% NA
45 Durables Hardware, Plumbing & 6.98% 4.25% 6.90%
Heating Equipment
CONFIDENTIAL 77
TAT
FinancialCapitale
Services Ltd.
46 Durables Professional & 12.63% 12.63% 12.63%

Commercial
Equipment
47 Energy Refineries 13.42% NA NA
48 Entertainment & Hotels & Restaurants NA NA 25.03%
Leisure
49 Entertainment & Recreation & NA NA 22.23%
Leisure Amusement
50 Entertainment & Travel Services NA NA 11.34%
Leisure
51 Finance Professional Services NA NA 41.59%
52 FMCG FMCG 9.76% 6.00% NA
53 Food & Beverages Beer, Wine & Distilled 18.13% 17.49% NA
54 Food & Beverages Packaged Food 10.00% 3.95% NA
55 Food & Beverages Soft Drinks 6.22% 8.00% NA
56 Food Processing Bakery 7.38% 8.21% NA
57 Food Processing Bottled Water 8.23% 7.50% NA
58 Food Processing Food & Beverages 11.29% 8.00% NA
59 Food Processing Food Processing 12.88% NA NA
60 Food Processing Marine Products 10.61% 10.69% NA
61 Food Products Cocoa products & 11.96% 10.55% NA
62 Food Products Dairy 9.43% 5.00% NA
63 Food Products Food products (other 8.00% 7.00% NA
than poultry and meat)
64 Food Products Tea 11.65% 4.50% NA
65 Gen Indl Services Industrial Services NA NA 12.40%
66 Hardware Networking 9.71% 4.70% 15.60%
Equipment
67 Hardware Office Equipment 8.87% 8.87% 8.87%
Equipment
68 Healthcare Medical Equipment 13.79% 10.00% NA
69 Healthcare Medical Supplies 13.56% 10.47% NA
70 Healthcare Diagnostic Centres NA NA 17.76%
71 Healthcare Drugs and 10.01% 4.50% NA
pharmaceuticals -
composities
72 Healthcare Drugs and NA 4.50% NA
pharmaceuticals -
exporter
pharmaceuticals -
formulation
pharmaceuticals -
Research
78 pharmaceuticals –
Retailer
Providers pharmaceuticals - bulk
drug API
CONFIDENTIAL 78
TAT
FinancialCapitale
Services Ltd.
77 Healthcare Hospitals NA NA 19.11%

Providers
78 Household Products Detergents & 13.45% 6.16% NA
Intermediates
79 Household Products Dry Cells 10.01% 8.03% NA
80 Household Products Electronic Equipment 9.68% 9.29% NA
81 Household Products Personal Care 19.56% 9.78% NA
82 Industrial equipment Abrasives & Grinding 15.36% 13.28% NA
83 Industrial equipment Bearings 13.58% 13.58% NA
84 Industrial equipment Compressors 13.80% 5.00% NA
85 Industrial equipment Electrical Equipments 19.08% 8.93% NA
86 Industrial equipment Electrodes Graphite 14.60% 11.02% NA
87 Industrial equipment Engineering 10.50% 10.50% 19.00%
88 Industrial equipment Engines 9.74% 5.67% NA
89 Industrial equipment Fasteners 8.44% 4.06% NA
90 Industrial equipment Industrial furnaces 10.03% 5.11% NA
91 Industrial equipment Industrial machinery- 12.57% 12.30% NA
chemical and textiles
92 Industrial equipment Industrial machinery 12.15% 11.43% NA
(excl. chem. & text.)
93 Industrial equipment Machine Tools 11.22% 11.22% NA
94 Industrial equipment Material handling 9.10% 10.98% NA
equipments
95 Industrial equipment Motors & generators 8.88% 8.36% NA
96 Industrial equipment Prime movers 17.80% 17.80% NA
97 Industrial equipment Printing machinery 14.92% 11.07% NA
98 Industrial equipment Pumps 13.13% 12.69% NA
99 Industrial equipment Storage Batteries 10.44% 12.01% NA
100 Industrial equipment Structure’s 9.32% NA NA
101 Industrial equipment Switching apparatus 8.90% 4.16% NA
102 Industrial equipment Transformers 13.21% 12.26% NA
103 Industrial equipment Transmission Line 11.06% 11.06% NA
Towers
104 Industrial equipment Turnkey Services NA NA 10.90%
105 Industrial equipment Valves 9.70% 8.10% NA
106 Industrial equipment Welding machinery 15.85% 9.00% NA
107 Institutions & Trusts Coaching Classes NA NA 16.43%
108 Jewellery Gems & Jewellery 6.18% 5.85% 11.00%
109 Media Advertising NA NA 11.32%
110 Media Broadcasting NA NA 26.80%
111 Media Cable & Other pay NA NA 14.72%
television services
112 Media Post Production & NA NA 23.90%
Animation
113 Media Publishing NA NA 15.96%
114 Metals Aluminium & 7.96% 9.03% NA
79 Aluminium
115 Metals Castings & forgings 8.83% 8.12% NA
116 Metals Copper & copper 5.86% 4.00% NA
products
117 Metals Ferro alloys 7.51% 7.93% NA
118 Metals Ferrous metals 10.65% 10.85% NA
CONFIDENTIAL 79
TAT
FinancialCapitale
Services Ltd.
119 Metals Granite & other Non- 10.78% 10.00% NA

Metal
120 Metals Non-ferrous metals 7.68% 9.97% NA
121 Metals Pig iron 3.88% 6.90% NA
122 Metals Steel (manufacturing) 12.66% NA NA
123 Metals Steel tubes & pipes 9.52% 6.03% NA
124 Metals Steel wires 10.57% 10.57% NA
125 Metals Wires and Cables 10.21% 7.75% NA
126 Mining Coal and Lignite 9.20% NA NA
127 Mining Crude Oil and natural 19.01% 11.01% NA
gas
128 Mining Minerals 13.45% 11.47% NA
129 Mining Non-ferrous metals 14.99% 12.30% NA
130 Non Store Retail Automatic Mortising NA NA 12.40%
131 Non Store Retail Catalogue & Mail- NA NA 12.40%
order
132 Non Store Retail Direct Selling NA NA 11.66%
133 Others Commission agents NA NA 5.09%
134 Others Glass & Glass 9.88% 9.31% NA
Products
135 Others Industries not 8.40% 8.40% 8.40%
classified
136 Others Other general purpose 17.80% 10.00% NA
137 Others Wholesale traders NA 5.67% NA
reporting only
commission income
138 Paints Paints & Varnishes 8.16% 5.12% NA
139 Paints Paints Equipment 21.00% 12.20% NA
140 Paper Paper & Paper 8.55% 15.37% NA
Products
141 Petroleum Products Petroleum Products 9.97% NA NA
142 Petroleum Products Retail Sale of NA 5.30% NA
Automotive
143 Photographic & Photographic & Allied 9.67% NA NA
Allied
144 Plastics Plastic Films 13.27% 11.03% NA
145 Plastics Plastic packaging 13.20% NA NA
goods
146 Plastics Plastic resins 6.13% 7.40% NA
147 Plastics Plastic tubes & sheets, 8.74% 10.50% NA
other plastic products
148 Plastics Thermoplastics 10.57% 10.95% NA
149 Professional Consultants NA NA 20.57%
Services
150 Professional Education Consulting NA NA 16.34%
Services
80 151 Professional Entertainment & NA NA 28.50%
Services media content
provider
152 Professional Executive Search NA NA 17.07%
Services
CONFIDENTIAL 80
TAT
FinancialCapitale
Services Ltd.
153 Professional IT Consulting NA NA 15.00%

Services
154 Professional Legal Services NA NA 30.00%
Services (solicitor firms)
155 Professional Motion Picture NA NA 22.80%
Services production, distribution
& exhibition
156 Professional Professionals NA NA 21.82%
Services
157 Professional Public Relations NA NA 20.00%
Services
158 Professional Technical consultancy NA NA 17.30%
Services & engineering services
159 Rubber Rubber & rubber 11.26% 10.00% NA
products
160 Services Diversified NA NA 21.73%
161 Services - business HR & A/Medical NA NA 23.39%
162 Services - Internet Services NA NA 12.26%
Communication
163 Services - Other communication NA NA 30.00%
Communication services (wireless
services, Telex
Services, Fax
services, Pager
Services, Other
telephone services,
other communication
services)
164 Services - Tele communication NA NA 19.93%
Communication services
165 Services - Transport Water transport NA NA 34.52%
166 Software ERP & Computer NA NA 19.42%
Softwares
167 Software ITES/ Call Centres NA NA 22.53%
168 Specialty Hobby, Toy, Game, NA NA 20.06%
Camera &
Photographic Supply
Stores
169 Specialty Books, Office Supplies 10.00% 8.00% NA
& Stationery
170 Specialty Contraceptives 16.88% 16.88% NA
171 Specialty Home Furniture & 10.98% 10.00% NA
Furnishing
172 Specialty Leather Footwear 13.19% 10.00% NA
173 Specialty Luggage & Leather 10.03% 8.00% NA
Goods
174 Specialty Opticians 15.30% 8.60% NA
81
175 Specialty Other Leather 6.14% 8.76% NA
products
176 Specialty Pens and Pencils 8.00% 8.00% NA
177 Specialty Sports Goods 19.30% 8.60% NA
178 Specialty Wood & Wood 8.08% 10.00% NA
Products
CONFIDENTIAL 81
TAT
FinancialCapitale
Services Ltd.
179 Textiles Blended yarn 10.39% 9.00% NA

180 Textiles Textiles (other than 5.09% 9.30% NA
cotton, jute & yarn, silk
and synthetics)
181 Textiles Readymade Garments 10.85% 9.20% NA
182 Textiles Textiles - Cotton 10.34% 5.80% NA
183 Textiles Textiles - Silk 20.32% 6.00% NA
184 Textiles Textiles - Synthetic 9.43% 4.87% NA
185 Textiles Woollen Textiles 10.89% 5.81% NA
186 Transport Land Transportation 9.30% 3.60% NA
187 Transportation Clearing & Forwarding NA NA 18.19%
Logistics agents
188 Transportation Courier NA NA 5.02%
Logistics
189 Transportation Goods Transport NA NA 6.60%
Logistics Services
190 Transportation Passenger Transport NA NA 13.10%
Logistics Services (Road)
191 Transportation Road Transport NA NA 8.41%
Logistics
192 Transportation Storage & NA NA 35.26%
Logistics Warehousing
193 Computers IT- Hardware 8.75% NA 9.73%
194 Textiles jute & yarn, silk and 10.99% 6.67% NA
82
CONFIDENTIAL 82

Home Equity-TCFSL-Consolidated Final Policy

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Home Equity-TCFSL-Consolidated Final Policy

Uploaded by

Copyright:

Available Formats

TAT

Tata Capital TATA Capital Financial Services Limited

Date: 16th March, 2017

1.15 :CA based assessment Program……………………………………………………………………………………………….……….…46

Circular no 422: Guidance note on Original Verification (OSV) of customer documents:............................... 56

1.24 Deviation Approving Authorities.............................................................................................................. 58

3 1.27 c. Internal Dedupe (TMF / TCFSL database) ............................................................................................. 64

i. Deviation mix:- ................................................................................................................................. 72

The Indian Mortgage market can be categorized in the following segments

 Private sector banks

1.1 Product Description :-

1.1 a. Product Positioning

The eligible segment is Resident Indians or Entities incorporated in India as follows

1.1 b. End use of Loan

Note: Loan cannot be used for any speculative or illegal purpose

End use monitoring

Following points are recommended to be adhered to:

a) Whether the Property is Self-occupied or Rented or occupied by Relatives of the Borrower?

2. Borrowers must be contacted personally by Credit Manager to find out:

End Use Monitoring Report : Home Equity

Customer & business details :

Years of business existence

Business set-up situated at

Stated end usage of loan

End use monitoring :

On-site verifications done?

Name of CA Agency/ Credit Manager :

1.2. Rates & Charges

1.2 a. Home Equity Product Offering:-

Policy is defined with certain pre login norms to be followed:

1.3 Product Policy Overview

MINIMUM AGE MAXIMUM AGE WORK EXPEREINCE

Applicant: Minimum Age to be 25 Salaried :Maximum Age to be Salaried : 3 years of employment

D. Co applicant :Loans will have co applicants

F. Negative/ Caution Profile:

G. Debt Burden Ratio (DBR):

3. CEQ loans availed by Construction firms, Contractors, etc

4. Auto/ Truck loans availed by Transporters

H. Equated Monthly Instalment (EMI):

I. Loan to Value (LTV):

One Principal outstanding cheque (referred to as Security PDC) also to be collected.

K. Credit Shield Insurance

1.4 Income Assessment Methods:

 Salary: Income as reflected in Net Salary reflected in salary slips

Original Seen and Verified:-

Requirement for SENP under his

Duly completed application Duly completed application

Latest passport Latest passport

Passport Passport Passport

Driving license Driving license Driving license

Life Insurance Policy Life Insurance Policy Life Insurance Policy

School leaving certificate School leaving certificate School leaving certificate

PAN Card PAN Card PAN Card

Landline / WLL / Post paid Landline / WLL / Post paid

Latest list of directors and

Must be on the letterhead of the

The deviation to waive-off the same

Utility bill-telephone bill,

Sales tax certificate Sales tax certificate

Residence proof required Residence proof required in

13 Sales Tax/Excise/VAT, Shop

statements, Trade license,

Last two months’ salary

Form 16 of financial year (-

Minimum 25 yrs at Minimum 25 yrs at *Minimum 25 yrs at

Minimum 18 yrs at Minimum 18 yrs at *Minimum 18 yrs at

Maximum 70yrs at Maximum 70yrs at *Maximum 70yrs at

The Applicable LTV The Applicable LTV