icici home loan finance

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Project Report

On

“ACCOUNTING PROCEDURE & DOCUMENTATION

FOR HOME LOAN AT ICICI BANK”

Submitted in the partial fulfillment of the

Requirement for the award of the degree

of

Master of Business Administration (MBA)

Under Guidance of

Mr. RAJAN KUMAR DHAKAD

`

SUBMITTED TO: SUBMITTED BY:

Mr. Ashok Kumar Gupta Umesh Kumar

HOD (MBA Dept.) Roll No. 0512970052

MBA (2005-06)

FORTE INSTITUTE OF TECHNOLOGY, MEERUT

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CONTENTS

V COVER PAGE

V ACKNOWLEDGEMENT

V PREFACE

V DECLARATION

V CERTIFICATE OF COMPANY

V CERTIFICATE OF INSTITUTE

EXECUTIVE SUMMARY

SPECIALISATION SUBJECTS

SPECIALISED DEPARTMWNR IN THE COMPANY

COMPANY PROFILE

V OVERVIEW OF ICICI

v BOARD MEMBERS

V BOARD COMMITTEES

V ICICI BANK GROUP

V PRODUCTS, VARIANTS AND SERVICES OFFERED

V OBJECTIVE OF ICICI

v ICICI BANK HOME LOANS DOCUMENTATION

v CREDIT NORMS BASED ON PRODUCT

V CREDIT NORMS SPECIFIC TO SALARIED

v CREDIT NORMS SPECIFIC TO SEPs & SENPs

V PROCEDURE FOR HOME LOAN

APPENDIX

QUESTIONNAIRE

BIBLIOGRAPHY

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ACKNOWLEDGEMENT

I wish to acknowledge with profound sense of appreciation, the help &

support I received from Mr. Rajan Kumar Dhakad for giving me an

opportunity to develop this project under his guidance.

I express my thank to Mr. Ashok Kumar Gupta, HOD (MBA Dept.)

Forte Institute of Technology and all the faculty & staff members of the

Department of Business Administration, for their help & encouragement

throughout my project work.

I owe a debt of gratitude to my parents and friends without whom I

would not have been able to achieve this objective.

`

UMESH KUMAR

Roll No. 0512970052

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DECLARATION

I, Umesh Kumar student of MBA 3rd Sem at Forte Institute of

Technology, hereby declare that the project report entitled “ACCOUNTING

PROCEDURE & DOCUMENTATION FOR HOME LOAN AT ICICI BANK” is

a result of all my efforts and co-operation by the organisational staff of ICICI

Bank Home Loans.

I further declare that the project report prepared and submitted in

Partial fulfillment of the requirement for the award of the degree of MBA is the

original work of mine, the report contains the data collected by me during the

training.

During the training I worked under the guidance of Mr. Rajan Kumar

Dhakad, Branch Credit Manager ICICI Bank Home Loans, Meerut.

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Place: UMESH KUMAR

Date: Roll No. 0512970052

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CERTIFICATE

This is to certify that the project titled “Accounting Procedure &

Documentation for Home Loan at ICICI Bank Home Loans” submitted by

Umesh Kumar (Roll No. 0512970052) to U. P. Technical University,

Lucknow for the award of the degree of Master of Business Administration

(MBA), is a bonafide record of work carried out by the above mentioned

student in this institute.

It is further certified that this project has been submitted to U. P.

Technical University, Lucknow for the partial fulfillment of the requirement

of the course of study.

(HOD) (Guide)

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Ph: 91-121-2622672, 2622673 Telefax: ………. Website: http://www.forteindia.org

PREFACE

Owning a home is probably one of the most precious and cherished

dreams of any person; especially when he/she has to earn his/her living from

a fixed quantum of salary. For that a person basically has two options- either

save/invest in a planned way, or take a home loan. Home loans can also be

termed as Home finance, housing loans or financial assistance for buying a

home. It is evident that over past few years, the home loan market in India

has grown at a rapid rate of over 40%. The most important sources of home

finance are housing finance companies, commercial banks, cooperative

banks and other non banking financial companies. As per the reports, there

are about 20 national Housing Bank-registered HFCs and over 200

unregistered HFCs in the country offering home loans. Statistics reveal that

Housing Development Finance Corporation (HDFC) is leading the market,

with State Bank of India (SBI) following it. Then the ICICI Bank and the Life

Insurance Corporation (LIC) Housing Finance Limited play a major role in the

market. Other foreign-owned banks like Citibank, Standard Chartered and

HSBC also owns considerable shares in the market.

In the development of any country, financial institutions play a very

important role. Number of housing finance companies have cropped up and

are trying to attract consumers by differentiating themselves through various

schemes directly or though the private consultancy firms. In the present

scenario there is a tough competition among the financial institutions, even

among the different schemes of one financial institute. People are flooded

with so many home loan schemes from a number of banks and HFCs, but it is

important for the home loan seeker to choose the right HFC and right

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package. To decide on this he would be well informed about the process of

getting the home loan, benefits and hassles in taking the home finance.

Now a days almost all the people are interested for various types of

loans so that the income they are earning can be used properly & the rest

amount can be paid in the installments. Mostly 50% of the population takes

loans to get rid of the rental obligations. Some takes loan for saving the tax

obligations & rest of the population take loan as a necessity. The factors that

should be considered while approaching an HFC are the lower interest rates,

lower documentation requirements, ability to meet the individuals need sof the

customers, shorter time span for processing loan applications, and the

customer service. In this way the financial institutions play a significant role in

the success of any particular scheme.

Here, I carried out a research work to let the people know how a loan is

proceed, what norms they should fulfill to take a home loan and what

documents are needed for taking a home loan from ICICI Bank. I hope that

the research work will be able to explain the details required for a customer to

know about the home loan processing.

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COMPANY PROFILE

V OVERVIEW OF ICICI

v BOARD MEMBERS

V BOARD COMMITTEES

v ICICI BANK GROUP

v PRODUCTS, VARIANTS & SERVICES OFFERED

V OBJECTIVE OF ICICI

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OVERVIEW

ICICI Bank is India's second-largest bank with total assets of about Rs.

2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40

bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449

mn) for the year ended March 31, 2005). ICICI Bank has a network of about

614 branches and extension counters and over 2,200 ATMs. ICICI Bank of-

fers a wide range of banking products and financial services to corporate and

retail customers through a variety of delivery channels and through its spe-

cialised subsidiaries and affiliates in the areas of investment banking, life and

non-life insurance, venture capital and asset management. ICICI Bank set up

its international banking group in fiscal 2002 to cater to the cross border

needs of clients and leverage on its domestic banking strengths to offer prod-

ucts internationally. ICICI Bank currently has subsidiaries in the United King-

dom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri

Lanka and Dubai International Finance Centre and representative offices in

the United States, United Arab Emirates, China, South Africa and

Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI

Bank is the most valuable bank in India in terms of market capitalisation.

ICICI Bank's equity shares are listed in India on the Bombay Stock Ex-

change and the National Stock Exchange of India Limited and its American

Depositary Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE). ICICI Bank has formulated a Code of Business Conduct and Ethics

for its directors and employees.

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At June 5, 2006, ICICI Bank, with free float market capitalization*

of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the

companies listed on the Indian stock exchanges.

Exponential Growth:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly-owned subsidiary. ICICI's shareholding

in ICICI Bank was reduced to 46% through a public offering of shares in India

in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fis-

cal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock

amalgamation in fiscal 2001, and secondary market sales by ICICI to institu-

tional investors in fiscal 2001 and fiscal 2002. Industrial Credit & Investment

Corporation of India Limited was formed in 1955 at the initiative of the World

Bank, the Government of India and representatives of Indian industry. The

principal objective was to create a development financial institution for provid-

ing medium-term and long-term project financing to Indian businesses. How-

ever, Following the economic liberalization of Indian economy it has renamed

itself as ICICI and transformed its business from a development financial insti-

tution offering only project finance to a diversified financial services group of-

fering a wide variety of products and services, both directly and through a

number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become

the first Indian company and the first bank or financial institution from non-

Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the

context of the emerging competitive scenario in the Indian banking industry,

and the move towards universal banking, the managements of ICICI and

ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be

the optimal strategic alternative for both entities, and would create the optimal

legal structure for the ICICI group's universal banking strategy. The merger

would enhance value for ICICI shareholders through the merged entity's ac-

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cess to low-cost deposits, greater opportunities for earning fee-based income

and the ability to participate in the payments system and provide transaction-

banking services. The merger would enhance value for ICICI Bank sharehold-

ers through a large capital base and scale of operations,

seamless access to ICICI's strong corporate relationships built up over five

decades, entry into new business segments, higher market share in various

business segments, particularly fee-based services, and access to the vast

talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Direc-

tors of ICICI and ICICI Bank approved the merger of ICICI and two of its

wholly-owned retail finance subsidiaries, ICICI Personal Financial Services

Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was

approved by shareholders of ICICI and ICICI Bank in January 2002, by the

High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of

Judicature at Mumbai and the Reserve Bank of India in April 2002. Conse-

quent to the merger, the ICICI group's financing and banking operations, both

wholesale and retail, have been integrated in a single entity.

What made this possible?

One man who can claim the phenomenal growth of ICICI is K V Ka-

math, the CEO of the company under whose stewardship the company had

witnessed a spectacular growth. He is the person behind the transformation of

ICICI from a financial institution whose main businesses was lending money

for industrial projects to a broad based finance group that extends loans to in-

dividuals, finances car purchases and engages in mutual funds. The urge for

growth seems to be never ending for him and the company. Now the com-

pany has focused on achieving the status of a one-stop shop, a universal

bank and a financial supermarket catering to different needs of customers

ranging from large multi-crore corporations to a common man on the street. In

the words of Kamath, "We want to be a global organization in the domestic

market."

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The participation of the employees in the activities of the company is a

key to the success for any organization. ICICI is no exception to this and

rightfully the cooperation from the employees to the management has been

outstanding. The company has been able to retain the best people through a

combination of training and performance linked compensation. "ICICI has em-

powered managers to try new techniques, technologies and process and

above all, to establish new beachheads for exploitation in the future," says

Gopalan Ramachandran, Chief executive, Business Economics and Risk

Management.

The other key factor that made the growth of the ICICI possible is the

constant lookout for new opportunities and technology. Kamath has once

quoted, "Technology at the ICICI will revolutionize the way we access the

public for assets or liabilities." The establishment of ICICI Web Trade Limited

is an example of the company's willingness to adopt technology. This has

helped the company to better manage non-market and other risks, to better

serve the customers and to deploy cutting-edge technologies according to an

industry observer.

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BOARD MEMBERS

v Mr. N. Vaghul, Chairman

v Mr. Sridar Iyengar

v Mr. R.K.Joshi

v Mr. Lakshmi N. Mittal

v Mr. Narendra Murkumbi

v Mr. Anupam Puri

v Mr. Vinod Rai

v Mr. M.K. Sharma

v Mr. P.M. Sinha

v Prof. Marti G. Subrahmanyam

v Mr. T.S. Vijayan

v Mr. V. Prem Watsa

v Mr. K.V. Kamath, Managing Director & CEO

v Ms. Lalita D. Gupte, Joint Managing Director

v Ms. Kalpana Morparia, Joint Managing Director

v Ms. Chanda Kochhar, Deputy Managing Director

v Dr. Nachiket Mor, Deputy Managing Director

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BOARD COMMITTEES

Audit Committee Board Governance & Remuneration Committee

Mr. Sridar Iyengar Mr. N. Vaghul

Mr. Narendra Murkumbi Mr. Anupam Puri

Mr. M. K. Sharma Mr. M. K. Sharma

Mr. P. M. Sinha

Prof. Marti G. Subrahmanyam

Customer Service Committee Credit Committee

Mr. N. Vaghul Mr. N. Vaghul

Mr. Narendra Murkumbi Mr. Narendra Murkumbi

Mr. M .K. Sharma Mr. M .K. Sharma

Mr. P. M. Sinha Mr. P. M. Sinha

Mr. K. V. Kamath Mr. K. V. Kamath

Fraud Monitoring Committee Risk Committee

Mr. M. K. Sharma Mr. N. Vaghul

Mr. Narendra Murkumbi Mr. Sridar Iyengar

Mr. K. V. Kamath Prof. Marti G. Subrahmanyam

Ms. Kalpana Morparia Mr. V. Prem Watsa

Ms. Chanda D. Kochhar Mr. K. V. Kamath

Share Transfer & Shareholders'/ Investors' Grievance Committee

Asset-Liability Management Committee

Mr. M. K. Sharma Ms. Lalita D. Gupte

Mr. Narendra Murkumbi Ms. Kalpana Morparia

Ms. Kalpana Morparia Ms. Chanda D. Kochhar

Ms. Chanda D. Kochhar Dr. Nachiket Mor

Committee of Directors

Mr. K. V. Kamath

Ms. Lalita D. Gupte Dr. Nachiket Mor

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Ms. Kalpana Morparia Ms. Chanda D. Kochhar

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ICICI BANK GROUP

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PRODUCTS, VARIANTS & SERVICES OFFERED BY

ICICI BANK

Deposits Cards Loans Investments NRI Services

Others

Saving A/c Credit Cards

Home Loans ICICI Bank Bonds

NRE Savings A/c

ICICI bank in News

Senior Savings Account

Debit cum ATM Cards

Personal Loans

GOI Bonds NRO Savings A/c

Investors Re-lation

Fixed De-posit

Travel Card Car Loans Mutual Funds NRE Fixed Deposit

Customer Care

Easy FD Two Wheeler loans

IPO NRO Fixed Deposit

Queries

Recurring Deposit

Online Services

Commercial Vehicle Loan

Pure Gold For-eign Ex Ser-vices

NRE Recurring Deposit

Feedback

Private Banking

Bill Payment

Loan against Securities

FCNR Fixed Deposit

Privacy

Roaming Current A/c

Shopping Farm Equip-ment Loans

Insurance RFC Savings A/c

Online Security

Young Stars

Ticket Booking

Construction Equipment Loans

Life Insurance RFC Fixed Deposit

Terms and Conditions

Salary A/c Share Trading

Office Equip-ment Loans

General insur-ance

Home Loans Disclaimer

Women A/c Charity Medical Equipment Loans

Donate2India Unsubscribe from Emailers

EEFC A/c Demat A/c Pre Ap-proved Loans

USA Patriot Act Certification

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OBJECTIVE OF ICICI

To examine the horizontal diversification decision of a financial

services institution that aims to become a universal bank. Also, to analyze

how an entrant might position itself to compete against powerful incumbents,

the strategic transformation of a major financial services institution, and

strategic choices faced by companies in emerging markets.

In keeping with its objective of being a globally competitive domestic

player, ICICI has always been a pioneer in introducing international standards

to the Indian financial markets. In particular, ICICI has made continuous

efforts to set higher standards for adequate and meaningful dissemination of

relevant information with the objective of achieving full transparency for its

stakeholders. Financial reporting is an area where ICICI believes that it is

imperative to use global benchmarks.

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ICICI BANK HOME LOANS DOCUMENTATION

The Home Loan product can be given to an applicant if it exists among

the approved borrower entities. Each applicant should meet pre-sanction

documentation norms and the credit norms for the approved borrower entity

as applicable. All income documents and first page of bank statement need to

be signed by the applicant/ co-applicant before submission.

APPROVED BORROWER ENTITIES

The following applicants are eligible for applying for home loans. The

approved borrower entities are defined in terms of their residential status and

employment category respectively.

I. RESIDENT INDIANS:

v Salaried

v Self Employed-Professional (SEP)

v Self employed non professional (SENP)(inclusive of both Retail & non-

Retail)

· Retail customer is defined as a customer applying for loan upto

Rs 5 lacs and tenor of 15 years

· Non-Retail customer is defined as a customer applying for loan

above Rs 5 lacs and maximum tenor of 10 years.

II. NON-RESIDENT INDIANS – (including NRIs and PIOs)

v Salaried

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DOCUMENTATION REQUIIRED BASED ON TYPE OF BORROWER

Sr.

No.Documents

Requirement for SALARIED

Requirement for SEP Requirement for SENP NRI (SALARIED)

1. Application form with photograph

· Duly completed application form signed by all applicants.

· Latest passport photographs of all applicants





· Duly completed NRI application form signed by all applicants.


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Sr.

No.Documents



2. Age proof

Age proof is waived for all applicants whose income is not considered for eligibility. However, age proof is mandatory for applicants below 20 years age & above 65 years, even if his/her income is not considered for eligibility.*

· Passport

· Driving license

· Life Insurance Policy

· Birth Certificate

· Election ID

· School leaving certificate

· Employee ID (only for PSU or Govt. employees)

· PAN Card

· SSC/HSC Admit card

· SSC/HSC Mark sheet

· School/college passing certificate

· Salary slip (if date of birth is mentioned)

· Domicile certificate

· Passport

· Driving license



· Election ID


· PAN Card





· Ration Card

· Passport

· Driving license



· Election ID


· PAN Card





· Ration Card

· Passport

· Driving license



· Election ID


· Employee ID (only for PSU or Govt. employees)

· PAN Card




· Salary slip (if date of birth is mentioned)


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Sr.

No.Documents



3. Job confirmation proof

Required for applicant below 23 years of age

Not Applicable Not Applicable Not Applicable

4. Proof of existence Not Applicable Partnership deed copy / MOA / article of association if applicable.

· Partnership deed

· MOA & Articles of association/Form 32

Not Applicable

5. Ownership pattern Not Applicable Not Applicable Latest list of directors and shareholding pattern certified by company secretary

Not Applicable

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Sr.

No.Documents



6. Business profile Not Applicable Not Applicable 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 of employees, market, branches if any, group company if any, assets, future business plans

· Ownership / equity stake – in case of promoter directors

Not Applicable

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Sr.

No.Documents



7. Office address proof

Not Applicable · Utility bill- telephone bill, electricity bill

· Shop & establishment act certificate

· Sales tax certificate

· Utility bill- telephone bill, electricity bill

· Shop & establishment act certificate

· Sales tax certificate

Not Applicable

8. Income proof

All income documents need to be signed by the applicant/co applicant.

For Cheque / Cash salaries (Fixed Income)

· Last one months’ salary slip

· Last month’s salary certificate with deductions

· Latest three ITRs, both personal and business along with computation of income

· Latest three years’ P&L accounts and B/S (with schedules) duly certified by a CA-both personal & business

· Advance tax challans if available.

When borrower is an individual-

· Latest 3 years ITRs with computation for the individual applicants and co applicants

· Latest form 16 & salary slip for directors

When borrower is a firm or company-

· Latest 3 years ITRs & audited / C.A certified profit & loss accounts and balance sheets

· Salary certificate (In English) specifying name, date of joining, designation and salary details

· Last two months salary slips

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Sr.

No.Documents



9. Income proof (Salaried)

Variable income

(An income defined as variable income if the components of the salary are variable like Shift allowance, overtime allowance and flying allowance etc.)

For Cheque, Cash & Green channel salary-

· Latest four months salary slips

· Latest months salary certificate with statement of variable components of income for last four months

Not Applicable Not Applicable · Salary certificate (In English) specifying name, date of joining, designation and salary details for last six months

· Last six months salary slips

10. Cash Salary Cash salary secondary income proof:

In case of tax paying customer-

· Form 16 or ITR

In case of customer paying no tax-

· PF statement

· Appointment letter

· Increment letter

Not Applicable Not Applicable Not Applicable.

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Sr.

No.Documents



11. Annual benefit if considered for eligibility

(Form 16 is compulsory of Salaried)

· Form 16 for financial year (-2), if case is pre July in financial year (0). Or Form 16 for financial year (-1), if application is made post July in financial year (0)

· Appointment letter / increment letter

· Certificate from Employer with details of annual benefits

Not Applicable Not Applicable · Appointment letter

· Increment letter

· Certificate from Employer with details of annual benefits

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Sr.

No.Documents



12. Bank statement / Pass book copy for applicants whose income is being considered for eligibility.

The first page of bank statement need to be signed by the applicant/co- applicant

· Bank statement required for 6 months

· Required from salary a/c (for cheque salary) or from operating a/c (for cash salary)

· The photocopy of front page mentioning name of account holders, account no, bank name and branch is to be obtained.

· Bank statement required for 6 months

· Required from operating a/c

· The photocopy of front page mentioning name of account holders, account no, bank name and branch is to be obtained.

· Photocopies of updated bank statements for the last six months- from current a/c of the firm or company

· Photocopies of updated bank statements for the last six months- from the current a/c or savings a/c of the individual applicants and co-applicant.

Latest 6 months bank statements from domestic ( NRE / NRO / FCNR / NRNR ) and international a/c.

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Sr.

No.Documents



13. Existing Loan

Repayment Track Record is required from the lending finance company when loan is not repaid regularly through bank statements or EMI’s reflected through bank statements

If existing loan is repaid through salary deduction or through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given

If existing loan is repaid through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given

If existing loan is repaid through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given

If existing loan is repaid through salary deduction or through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given

14. Passport & Visa Not Applicable Not Applicable Not Applicable Copies of valid passport & Visa. Passport should not have a No Entry Stamp on the passport prohibiting NRI applicant entering a country

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Sr.

No.Documents



15. Additional documents for PIO who does not have a valid Indian passport

Not Applicable Not Applicable Not Applicable · Declaration as per ICICI format duly notarized and stamped for the requisite value

· Ration card or passport of the parents of PIO which establishes that his parents are Indians

16. General Power of Attorney

Not Applicable Not Applicable Not Applicable · As per our standard draft duly attested by Indian consulate at the place of residence of the NRI customer in case NRI customer is not available in India at the time of application

· Power of attorney to be locally notarized if NRI customer is in India

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Sr.

No.Documents



17. Proof of continuity of business/ employment for last 3 years or 1 year contract renewal

Not Applicable Same as Income Proof Not Applicable · Appointment letter / employment contract copy

· Increment letter

· For merchant navy copy of CDC (Continuous discharge certificate) required as an additional document

18. Signature verification

Processing fee cheque from salary a/c / other operating a/c

Processing fee cheque from operating a/c

SAME AS SEP SAME AS SALARIED

19. Processing Fee Cheque

From Salary a/c / operating a/c (for cash salary) on which PDCs will be drawn

From operating a/c on which PDCs will be drawn

From operating a/c on which PDC’s will be drawn

From NRE / FCNR / NRO / NRNR a/c from such accounts as may be permitted by RBI from time to time

20. FI & Tele-verification reports

Reports of physical verification & Tele-check at office and/or residence for all applicants are to be done as specified by Policy and Risk from time to time.

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ADDITIONAL DOCUMENTATION WHERE A PRIVATE LIMITED COMPANY IS A BORROWER:

1. When the property is owned by a company:

Sr. No Document Requirement

01. Loan documentation set · Amendatory schedule to the loan agreement

· Declaration

02. Memorandum of entry Mortgage of property by Memorandum of Entry or as mandated by Legal from time to time.

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03 Board Resolutions Board resolution authorizing the company to mortgage the property, borrow and repay the monies.

04. Form 8 & 13

(In case the property is acquired by a Company)

Filing of Form 8 & 13 with the ROC in order to register the charge, post disburse-ment.

05. NOC when Limited company is the co-owner of the property

NOC would be required from the Bankers/other secured lenders for the Loan to be taken from ICICI Bank. The NOC would be required to be taken as a Pre-disbursal document. In addition, the lenders would exclude the property financed by ICICI Bank from their security. This would be applicable for loans greater than Rs 1 crore

2. When the property is not owned by a company:

Sr. No Document Requirement

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01. Loan documentation set Amendatory schedule to the loan agreement

02. Board Resolution Board resolutions authorizing the Company to borrow and repay the monies.

Pre-Disbursal documentation:

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)

Technical Appraisal Report - As required by technical manual

Property documents - Legal opinion from an empanelled lawyer certifying a clear & marketable title to the property

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Section 4: CREDIT NORMS BASED ON PRODUCT:

Sr. No Particular Product- Home Loan

1. Age of Borrower Considered for Eligibility:

· Minimum 21 yrs at loan origination

· Maximum 65 yrs or age of retirement, whichever is less at loan maturity

Not considered for eligibility:

· Minimum 18 yrs at loan origination

· Maximum 70 yrs at application or 80 yrs at the time of loan maturity

2. Borrowers · All owners to be borrowers

· If no co borrower, PG required

· No minor to be borrower

· Max of 3 co borrowers

(Co-borrowers can be spouse, parent or brother or son; income of co-borrower can be considered for eligibility)

3. No. of dependents Not to exceed 5

4. Geographical Limits

· Property to be located within geographical limits

· Applicant must be staying within geographical limits

5. Bank Statement Verification

Parameter Green Non Green

Cheque bounces

Not to exceed 1 Not to exceed 2

Salary credits (numbers)

Minimum 3 Minimum 5

6. Banker Verification Not Applicable

7. Additional Security 1. Personal Guarantee

2. Additional Property

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8. Negative Profile Applicant / Co-Applicant not to be from negative profile list

9. Negative Areas · Property not to be located in negative area

· Customer’s residence not to be in negative area

10. Validity of loan approvals

FOR SALARIED & SEP:

6 Months from the date of sanction

Re-credit, if customer makes disbursement request after 6 months from sanction letter date, or, if gap between two disbursements exceeds 6 months. For re-credit, the following documents are necessary –

· Latest salary slip/latest income proof for SEP or SENP

· Office Tele-check

For change in job, all documentation as defined in section 5 will be required

FOR SENP:

Sanctions would be valid for a period of 3 months only, subsequent to which Re-credit would be required to be done. In case where the latest ITRs and B/S & P&L Account have not been taken, the same would have to be taken along with the latest Bank Statements

11. Completion period for under construction cases

Only those properties, which are going to be completed within 2 years from the first disbursement date, will be financed

For property identified, this information has to be obtained through application form

For property not identified, the same has to be ensured at the time of disbursement through site engineer’s report or directly from the builder or through customer’s letter stating the information

12. Decrease in loan amount earlier sanctioned

Authority: L4, irrespective of credit authority limit

FOIR & LTV not to exceed than the earlier sanctioned FOIR & LTV

`


13. Increase in loan amount earlier sanctioned

Authority: As per delegated authority of the cumulative loan amount after increase

Minimum increase in loan amount (after initial sanction) must be 10% of sanctioned amount subject to minimum of Rs. 20000

14. NRI transfer back to India

Not Applicable

15. Purpose To acquire/construct a residential property. The property could be –

· Under construction

· Ready

· Resale

16. Loan to Value Ratio

LTV is defined as Loan/Value of the Property

In case of purchase:

· 85% of COST OF PROPERTY

In case of Resale:

If COP = MV, LTV = 85% of COP

If COP < MV, LTV = 85% of MV

If COP > MV, LTV = 80% of MV subject to 100% of COP

17. FOIR

(for income consideration refer Sec 8 Annexure 4 for details)

Discretion of 2% will be allowed higher than the approved limits.

4200-<5000 = 40%

5000-<8000 = 45%

8000-<25000 = 50%

>=25000 = 55%

(Discretion of 2% will be allowed higher than the approved limits)

FOR SENP-

Retail – Max 55%

Non retail – Max 100% subject to combined FOIR+ LTV of 140%

18. Loan Amount per applicant

Minimum Rs 2 lac

Maximum Rs 3 crore

Subject to:- For SENP:

Retail – max 5 Lacs

`


19. Loan Amount athorisation

As per delegated authority levels

20. Rate of Interest & Fees

Fixed or Adjustable rate of interest as communication by Policy & Risk from time to time

21. Term Max up to 20 yrs

Subject to SENP: Retail 15 yrs, Non-Retail 10 years

22. Extended Term Max 30 years

23. Type of borrower · Salaried

· SEP

· SENP

SENP includes:

1. SENP Retail:

Proprietors, Partners, Directors of Pvt. Ltd. Cos.

2. SENP Non-Retail:

Individuals -

Proprietors, Partners, Directors of Pvt. Ltd. Cos.

Non-individuals-

· Private Limited Companies

24. Property · Property age max 35 yrs at the time of loan application

· Loan tenor not to exceed residual age of the property at the time of disbursement

· The property should be self contained

25. Multiple Property Only 1 property per applicant - Deviation at L2

26 Security of the loan

Equitable mortgage of the property finance by deposit of title deeds. The charge can be

· First Charge

· Pari Passu Charge

· Second charge

`


27. Mode of repayment Either through-

· Post dated Cheques

· Deduction at source

· Auto debit

· Monthly payment

28. No of PDC for EMI Minimum 36 and in multiples of 12 thereon

29. Repayment

(Note: Existing and or new or any other the repayment facilities should conform to system requirements)

· EMI

· SURF

· FLIP (Maximum 2 stage FLIP calculation i.e. only 2 different EMI over the tenor of the loan)

· Balloon Payment

· (Only interest servicing (Pre EMI) till the entire loan is disbursed)

30. Disbursal · In case of under construction - favoring builder

· In case of own-construction - favoring borrower or contractor

· In ready possessions- favoring seller or builder

· In case of refinance favoring- builder or seller or borrower

31. Pre-EMI Charges For fully disbursed cases: From the cheque hand over date till the end of the month (both days inclusive)

For partly disbursed cases: From the cheque hand over date of the 1st disbursement, till the last date of the month in which last disbursement takes place

32. Pre-Payment fees As communicated by Policy and Risk from time to time

33. Dedup De–duplication to be carried as a post sanction activity & is to be done at COPS. In back to back situation where the file moves immediately for disbursement after sanction the branches would email the data to COPS and COPS would communicate de-dupe result over mail to branch.

34. Facility Type Term Loan

`

Section 5: CREDIT NORMS SPECIFIC TO SALARIED


1.Minimum Gross income

(combined eligibility of all borrowers)

· Category A Rs 7000

· Category B Rs 6000

· Category C Rs 5000

Note: Minimum income includes core income (salary) and other sources of income

2.Income Consideration

Refer Sec 8, Annexure 4

3.Reduced Minimum Income

With PG the Minimum income norms are:

· Category A Rs 5000

· Category B Rs 5000

· Category C Rs 4200

4.Minimum Pension Income

(defined as 50% of basis + DA of last pay drawn)

Rs 48000/ per annum.

(To be considered even when co- applicant’s income not being considered, provided minimum gross income norms are met)

5.EMI to net salary Not to exceed 70% of net salary reflected as per

latest salary slip

6.No. of years in total employment

One year

7.Minimum qualification

Std X (SSC complete)

8.Extension of loan maturity beyond retirement

Can exceed retirement age upto 1 year

9.Interest Subsidy Refer Section 8, Annexure 4

`


10.Verification of borrowers

· Physical verification at Residence and Office

· Tele-verification at Residence and Office.

· Cash Salary


11.Telephone at Office

It is mandatory in every case for the customer to give his office telephone number. The exception to the above would be the employees of government departments only (not government companies)

12.Category of em-ployment

To be employed in

· Public Ltd cos.

· Govt./Public sector

· MNC

13. Special credit norms:

1) Cash Salaried 1. The applicant must be employed only in Government / PSU sector & Public Ltd. Co.

2. There should be no FI waivers

`


2) Defense Personnel

1. Finance only for commissioned officers as per list given below

2. Rank to be validated by employer letter stating clearly that the employee is a permanent employee and is not on short commission/copy of identity proof

3. Rank may also be validated by copy of ID

4. A non-defense guarantor residing at a HFC location

5. If an applicant from defense background is applying for a loan, then one of the immediate relatives of one of the applicants should be staying in the location in which the property is being purchased/constructed. Immediate relatives include – Father, Mother, Brother or Sister

Army: Lieutenant, Captain, Major, Lt. Colonel, Colonel, Brigadier, Major-General, Lt. General, General

Navy: Sub. Lt., Lieutenant, Lt. Commander, Commander, Captain, Commodore, Rear Admiral, Vice Admiral, Admiral

Air Force: Flying Officer, Flying Lt., Squadron


Leader, Wing Commander, Group Captain, Air Commodore, Air Vice Marshal, Air Marshal, Air Chief Marshal.

`


3) Software Professionals

1. The PG is required for applicants below 30 years of age & working in software companies on software development. However the PG is not required for applicants working with software companies on software development approved by Policy & Risk from time to time.

2. For all applicants the following additional documents are required:

· Photocopy of passport

· Permanent address to be mentioned in application form.

· Email address need to be obtained in all cases.

4) Borrower working with Pvt. Ltd. Co.

Norms for the employee

· Minimum qualification - Graduate

· Minimum 5 years experience in same company/industry.

· PF deduction to be reflected salary slip/certificate

· Income proof – salary slip/certificate (Bank statements reflecting salary credits) Cheque salary only

Norms for the Private Ltd Co.:

· Minimum 20 employees

· Minimum turnover of Rs 1 crore

· Profit making company for last 2 yrs

Docs required from Pvt Ltd Co.:

(Required Balance sheet & P & L a/c or

Turnover details such as sales & profit to be certified on the letterhead of the company)


`


5) Borrower working with trust / partnership / sole trading concern

Employees of only select trust, partnership firm and a sole proprietorship concern is to be funded.

The entities to be approved by Regional Business Head OR Head Policy & Risk

The borrowers employed in the select entities to meet the following additional norms-

· Minimum qualification requirement is a graduate

· Minimum experience of five years in the same industry

6) Police Employees

Only confirmed police employee cases can be done at all PFS locations with a portfolio cap of 3%

14.Personal Guarantee

In case of No Co-borrower, applicant from Defense services, applicant is below 30 yrs of age & is working in software company.

Refer Sec 8 Annexure 3

`

Section 6: CREDIT NORMS SPECIFIC TO SELF EMPLOYED

NON PROFESSIONAL (SENP)

SENP IS DIVIDED INTO 2 CATEGORIES:

1. RETAIL: The loan is restricted to Rs. 5 lacs and tenor upto 15

years

2. NON-RETAIL: The minimum loan amount is Rs. 5 lacs and max

Rs. 3 crore, tenor restricted to max 10 years.


1. Minimum income · Minimum Income will be as following:

· Retail - Rs 60000 p.a.

· Non-Retail - Rs100000 p.a.

· Proprietors – Net Profit (P/L)

· Partners - Partner’s Share of Net Profit (as per P/L) and Remuneration / Salary from firm (as per P/L or IT returns) Pvt. Ltd co. - Net Profit (as per P/L)

· Directors - Salary as per latest Form 16 and ITR

· For fulfilling minimum income norms adding nominal expenses like depreciation, interest on capital to partners / directors etc. to net profit shall not be considered.

2. Minimum No of years in business

· Retail - 5 years

· Non-Retail - 3 years

3. Cash losses in last 2 years

Retail & Non-Retail - Not acceptable.

4. ITR verification Retail & Non-Retail - mandatory for latest year

5. Client Reference · Retail - not required· Non-Retail - Required

`


6. Telephone in office of business

Retail & Non-Retail - required


7. Personal Discussion

· Retail - Not required

· Non-Retail - Required

8. Field investigation of office / factory / workshop

· Retail - required

· Non-Retail - required

9. Personal Guarantee

Retail and Non-Retail Required from main partners / directors

10. Repayment track record

· Mandatory if EMI of the existing loan is more than 10% of appraised income for all loans within the last 6 months.

· Loan closure statement must for loans matured within last 6 months.

11. Verification of borrowers

Retail and Non-Retail - Residence FI, office FI and Office tele verification to be done

12. Repayment Mode · PDCs

· Auto Debit or monthly payments by customers with a security PDC

13. Additional norms for Non-retail

1) When Pvt. Ltd. Co. is the main applicant, all main directors to be taken as co-applicants to the loan.

2) Pvt. Ltd. Co. is to be taken as co-applicant to the loan when income of Pvt. Ltd. Co. is considered for loan eligibility purposes.

14. Financial Norms Cash profit trends - Maximum drop less than equal to 10%

15. Income consideration

Refer Sec 8 Annexure 4

`


16. LIC Agents The TDS / certificate issued by LIC for last 3 years required as an additional document to the income proof

Eligibility to be calculated on the basis of income as given below-

Total income =100% of renewal business + 50 % of new business / bonus as per latest TDC / certificate

Section 7, Annexure 1: PERSONAL GUARANTEE NORM (PG)

Personal guarantee can be Type- I or Type- II. Type I is a PG from

whom income proof is required and Type - II is a PG from whom income proof

is not required. Type- I PG shall be taken when applicant/s do not meet

eligibility norms. Type- II PG shall be taken for establishing contact with

applicant/s.

`

Type-I Guarantor Type-II Guarantor

Cases where financial guarantor

shall be taken when -

· 7k >minimum income> 5k -

Category A city

(If applicant’s income is between

Rs.5k and Rs.7k)

· 6k >minimum income> 5k -

Category B city


Rs.5k and Rs.6k)

· 5k >minimum income> 4.2k -

Category C city


Rs.4.2k and Rs.5k)

Cases where non-financial guarantor

shall be taken -

· In case of no co-borrowers.

· In case applicant is from defense

services.

· In case applicant is a software

professional below 30 years

Documentation

· Latest salary slip/Business & personal ITRs with P& L a/c & B/S

· Photograph

· Age proof

· Address proof

· PG form

Documentation

· Photograph

· Age proof

· Address proof

· PG form

`

Who can be a personal guarantor?

· The guarantor should be known to the applicant.

· The guarantor should not belong to a negative profile and should not be

from negative area.

· The guarantor should be based in a HFC location.

· The guarantor should be in service till the maturity of the loan. In case, the

guarantor is self-employed, he should not exceed 65 years of age at loan

maturity.

· His net salary should be at least equal to the EMI.

· If “net salary” condition is not met, then the applicant can bring 2

guarantors.

· The guarantor should not have taken/ given any other loan or guarantee to

an existing ICICI loan. In case the guarantor has taken loan or given

guarantee before, both cumulative loan amount and guarantee shall not

exceed the eligibility norm of the Guarantor, as applicable.

· In case of enhancement of a disbursed loan, where we have earlier taken

a Personal Guarantee, we need to get another Personal Guarantee format

signed from the Guarantor with the enhanced amount. The same

Guarantor or a new Guarantor, meeting the norms may give personal

Guarantee for the enhanced amount.

· In case of defense services, personal guarantor should be from non-

defense background.

· For software professionals, the personal guarantor must be other than

spouse and children. The guarantor should be from non-software

background.

Income considerable for Salaried Borrower:

Main source of income

Particulars% for

eligibility Proof

Regular items in salary slip / monthly salary certificate

100% Salary slip or month’s salary certificate.

HRA to be added to income if applicant plans to shift to his own house from company provided accommodation

100% Appointment letter Or annual salary certificate

Pension income(50% of BASIC + DA, of the last pay drawn)

100% Latest pension slip OR Employer certificate ORLatest salary slip

Bonus 100% Appointment letter/annual salary certificate

Annual benefits (LTA etc)

50% Annual salary certificate / appointment letter

Fixed reimbursements on monthly basis not reflected in salary slip /monthly salary certificate

50% Annual salary certificate / appointment letter

Variable items like overtime, performance incentive, flying allowance, mileage allowance.

50% of average of last 4 months

4 months’ salary slip / salary certificate mentioning variable salary component for 4 months.

Reimbursement against actual (medical, telephone bill reimbursement etc.)

0% Not applicable

Other sources of income

Particulars % For eligibility Proof

Agricultural income(As stated in ITR)

50% of average of last 2 years

3 years ITRs or ownership document copy

Rental income 100% of average of last 2 years

3 years ITRs

Rental income 100% of current rental income as per lease agreement

Lease agreement for 3 years

LIC commission /Broker commission-Commission on LIC, NSC, KVP, IVP and postal savings.

50% of commission on new business and100% of commission on renewal business

Certificate/ original commission slip from cos.

Interest /Dividend Income 50% of average of last 2 years

3 years ITRs.

The aggregate of the other sources of income must not be more than 100% of the aggregate of main salary income.

Income considerable for Self Employed Professionals:

FOIR – GPR method for doctors

01. FOIR - GPR method(all business loans and loans for personal use to be taken for FOIR)

FOIR= ICICI EMI & other EMIs / (Average GPR for last 2 years / 12)

FOIR – NP method for CA, Architects, Lawyers & Professional Consultants

02. FOIR - NP method(only loans for personal use to be taken for FOIR calculation)

FOIR= ICICI EMI & other EMIs / (Average NP for last 2 years / 12 )

Note: Gross Professional Receipts (GPR) do not include any non-professional receipts such as other sources of income as listed below:

Eligibility from the other sources given below should be calculated separately on the basis of 50% FOIR and added back to the eligibility as calculated above.

Other sources of income

% for eligibility Proof

Agricultural income(As stated in ITR)


3 years ITRs

Rental income 100% of average of last 2 years

3 years ITRs

Rental income 100% of current rental income as per lease agreement

Lease agreement for 3 years

Interest /Dividend Income 50% of average of last 2 years

3 years ITRs

Medicine income (for doctors only)(Method of calculation :Net medicine income = Closing stock + Sales- Purchase – Opening Stock)


3 years P/L a/c and B/S

Note: The aggregate of the eligibility from other sources of income must not be more than 100% of eligibility as calculated above.

Income considerable for Self Employed Non-Professionals:

Type of income To be considered for eligibility

Business Income

A. Net profit 100% of last two years average

B. Depreciation 50% of last two years averageNote: Depreciation amount calculated by above method should not exceed 100% of last 2 years’ average Net Profit

C. One time / unusual expenditure like office renovation

Can be considered & added back to the net profit of that particular year before considering it for eligibility # In case of net loss, one-time unusual expenditure should not be added back

Personal Income of Applicant and Co-Applicant

D. Salary / Remuneration from Sole Proprietorship / Partnerships / Company

100% of average of last 2 yearsMust be reflected in ITR for last 3 years

E. Agriculture income 50% of last two years averageMust be reflected in ITR for last 3 years

F. Rental income 100% of average of last 2 yearsMust be reflected in ITR for last 3 years

G. Interest / Dividend Income

50% of average of last 2 yearsMust be reflected in ITR for last 3 years

H. Capital gains & speculation income / sale of asset / one time interest & dividend income / any other unusual income

Not to be considered Any income from this source should be deducted from profit before considering it for eligibility

Note: Summation of E, F and G should not exceed 50% of the total appraised income.

Section 8: Annexure 5: Negative profiles:

Ø Daily wage laborers / Mathadi Workers

Ø Drivers and Conductors of SRTC / Taxi drivers / Auto Rickshaw Drivers

/ Commercial Vehicles Drivers

Ø HUF

Ø Anti Social Elements

Ø Politicians

Ø Garment Exporters

Ø Employees of BIFR Companies

Ø Watchmen

Ø Security Services - Companies and their Employees

Ø Stock Brokers

Ø Real estate agents

Ø Tour Operators

Ø Cable Operators

Ø Mine and Quarry workers

Ø Firms engaged in parcel movement

Ø Plantation / Time Share companies

Ø Employees of Chit fund/Stock Broking/Investment companies

Ø Bar Owners

Ø Employees of NBFCs below AA rating

Ø Film stars (The negative list includes all persons associated with the

Film Industry i.e. whose income / cash flows are linked with the film

industry)

Ø Class 4 employees

Ø Employees of Dot-Com companies

Ø Builders and their relatives

Rejection of a Home Loan Case:

A file may be rejected by the ICICI Bank Authority if there is some

authentic reason/s for the requested Home Loan. Reason for rejecting a case

may be categorized in the following way:

1) Documentation of Property

Ø Credit documentation as not per policy

Ø Technical norms not found

Ø Legal documentation not as per policy

Ø Fraud document submitted

2) Financial Reasons

Ø PF cheque bounce

Ø Negative RCU

Ø Unsatisfactory RTR / credit history

Ø Income norms not met

Ø Employment norms not met

Ø Poor financials case

Ø High outstanding of Debtors

Ø Too many existing obligations

3) Geographical Reasons

Ø Outside geographical limits

Ø Property in negative area

Ø Residence in negative area

4) Personal Profile

Ø Negative profile

Ø Negative FI

Ø Dedupe match found

Ø Income ownership norms not met

Ø Poor banking habits

Ø Dependence more than five

Ø Manipulated material facts

Ø Internal family transaction of property

Ø Age norms not met

Ø Customer withdrawing

Ø Negative reference

Home Loan Procedure at ICICI Bank Home Loans:

The Indian housing finance companies offer a range of options for

individual loans. The loan schemes are opened to both Indian Residents and

NRIs. The loans schemes for Resident Indians are buying a new house,

buying an existing house and Home Improvement. The loans schemes for

NRIs are buying a new house and buying an existing house and Home

improvement; applied as Resident Indians. There are several schemes and

types of loans are available. These are:

1) Home Purchase Loan

2) Home Improvement Loan

3) Home Construction Loan

4) Home Extension Loan

5) Home Conversion Loan

6) Land Purchase Loan

7) Bridge Loan

8) Balance Transfer Loan

9) Top-up Loan

Application Process:

When a customer applies for a home loan at ICICI Bank Home Loans, the

customer is introduced to the DME (Direct Marketing Executive). DME is a

person who works with a DMA (Direct Market Agency), which is authorized for

processing the home loan documentation by ICICI Bank Home Loans. The

DME has direct contact with the customer for various requirements of

processing a loan. The customer fills the application form and submits all the

documents required for home loan to the DME for operation.

Documents required for all applicants at the time of application for a

home loan are:

1. Passport size photographs of all the applicants (applicant and co-

applicant)

2. Photo ID proof

3. Residence address proof

4. Office address proof (for Company / firm only)

5. ID proof (for Company / firm only)

6. Bank statement for last 6 months of salary account and any other

operating account

7. Processing Fee cheque in favour of ICICI Bank

Some other documents are also required by the ICICI Bank with the

above documents. In case of Salaried Applicant:

1. Latest salary certificate / Slip showing all the deductions from the

employer

2. Four months salary statement required in case of variable salary /

Latest form 16 / ITR (Income Tax Return)

3. Appointment / Increment letter from the employer for annual benefits to

be considered

In case of Self-Employed Applicant ICICI Bank requires the following

documents along with the above mentioned documents:

1. Computation of Income, Balance Sheet and the Profit & Loss Account

along with Schedules of the firm / company and individual for the past 2

years duly certified by a Charted Accountant

2. ITR for the firm / company & individual for the past 2 years duly

certified by a Charted Accountant

3. Brief profile of company / firm

4. Business continuity proof for the last one year (either a letter from the

Bank starting the same or Bank statement for the past one year)

5. Qualification Certificate for Self-Employed Professionals

The moment you decide to buy a home, you can put in your application

to ICICI Bank. You can apply for a loan even before you have selected the

property. The property need not even be in the same city where you are

residing. The only condition being that ICICI Bank has home loan operations

in both the cities. Should there be a charge in your financial status or plans,

you can withdraw your sanction within 6 months of approval. However, the

Bank is always ready to assist the customers in the event of legitimate

problems.

Processing Fee:

A processing fee is charged by ICICI Bank for the home loan. Home

loans are no different from other types of loans. This is a better deal on

different charges individuals have to pay to avail of better services. ICICI Bank

charges 0.5% of the amount requested for home loan. Service tax @ 12.24%

on above amount is also charged by the bank. It is Rs. 561.20 per Lac or Rs

2000 which is higher.

Interest Rate:

The interest rates charged vary from company to company, and may

range from about 9.5% to 15%. The interest rate on ICICI Bank Home Loans

is linked to the ICICI Bank Floating Reference Rate (FRR)/PLR. If FRR/PLR is

increased by 0.5%, consequently the interest rate for all customers under

Adjustable Rate Home Loans (ARHL) also goes up by 0.5%. There is two

types of interest rates- fixed rate and floating rate.

Fixed Rate:

Fixed rate of interest remains unchanged for the entire duration of loan.

It keeps you away to the worry to pay high interest rates if they are increased

in the future. At the same time, you lose the benefit of enjoying the lower rates

if they drop in the market. The present scenario decides the entire term of the

loan on interest. If the comparative rate of interest is low then it is a good

chance for the customer.

Floating Rate:

Floating rate of interest fluctuates according to the market lending rate.

The interest you pay may vary depending on the rates that exist in the market

lending rate, i.e. you need to pay lower interest if the interest if the interest

rate fall and the vice versa. The present rate of interest will not be applied in

future. The competitive rate of interest will help you with low interest. Certain

risk is involved in floating rates especially when the interest rates increase in

future.

Eligibility Criteria:

The eligibility criteria considered for applying for a home loan are as follows:

1. The loan seeker should be an Indian resident or NRI, and should be

salaried or self employed (professional or non-professional).

2. It may be difficult for the individuals who have others loans to be paid

off to acquire the home loan.

3. The details of the individual such as the number of the people

financially dependent on the individual, the individual’s credit

repayment history and his savings habits are also considered.

Loan Amount:

A number of factors are taken into account when assessing your

repayment capacity. Your income, age, number of dependants, qualification,

assets and liabilities, stability / continuity of your employment / business are

some of them.

However, there are ways by which you can enhance your eligibility.

1. If your spouse is earning, put him/her as a co-applicant. The additional

income shall be included to enhance your loan amount. Incidentally, if

there is any co-owner they must necessarily be co- applicants.

2. Did you know that your fiancee’s income can also be considered for

sanctioning the loan on your combined income? The disbursement of

the loan, however, will be done only after you submit proof of your

marriage.

3. Providing additional security like bonds, fixed deposits and LIC policies

may also help to enhance eligibility.

While there is no need for a guarantor, it could be that having one

might enhance your credibility with us. If so, our loan officer would provide

with you the necessary details.

The final amount to be sanctioned will depend on your repayment

capacity. However, what you ultimately are entitled to will have to confirm

within the limit fixed for each loan.

Sanction Process:

Application form is processed by the CPAs (Credit Processing

authorities) for sanction. It moves through the CPAs who upload the

information on the computer by prescribed software by the ICICI Bank and

ultimately sanction is made by the BCM (Branch Credit manager). The

application form with all the necessary documents is known as a “File” in the

sanction process.

SANCTION

COLLECTION OF THE NECESSARY DOCUMENT

CREDIT APPRAISAL BY ICICI BANK

LOAN SANCTION / REJECTION

SANCTION LETTER DELIVERY AT YOUR DOOR STEP

File in the ICICI Bank Home Loan:

Step I

The file is logon by CPCS and I-SFA for processing on the computers

in the Bank. In this the basic details of the applicant and co-applicant are

uploaded and Dedupe Report is matched that the client is not in the fraud list

developed by the Bank Association to know the trust worthiness of the

customer.

Step II

FI (Field Investigation) is carried out on the file in which verification of

various things is done. In Meerut Branch, Bishnoi financial limited carry out

this job. The report includes the following:

1. Residence Verification Report

2. Employment / Business Verification Report

3. Tele Verification Report:

i. Residence Verification Report

ii. Office Verification Report

Step III

The file is logon by PQIS (Performance Query Information System) and

MIS (management Information System). The file is given an ID for the

customer applied and all further processes are done with the help of this ID.

The PQIS contains the following information:

· Application No.

· Applicant Name

· Applicant ID

· Customer Identification No. (CIN)

· Borrowing entity type

· Resident (Indian / NRI / PIO)

· DME Name

· Status (Sanction / Disbursement / cheque delivered / decisioned)

· File type (Fresh login / Sanction / Disbursement)

· Interest Type & rate (Fixed / Floating)

· Phone (Office / Residence / Mobile)

· Company Name

· Tenure in Months

· Fee Cheque Details

· File login Date

· Loan Amount Requested

· Product (Home Loan / Top Up Loan)

· Welcome Call Date

· Date of FI Firing

· Date of FI Received

· FI Result

· RCU (Screened / Sampled)

· File completion Date

· BCM Queries Date

· Result (Sanction / Reject)

· Date of sanction / Rejection

· Date of sanction / Rejection letter

· Loan Amount Sanctioned

The MIS contains the following information:

Sanction entry:

· Serial No.

· SALARIED / SEP / SENP

· Applicant Name

· Application No.

· APS No.

· Channel

· Loan Amount

· Cheque Amount

· Cheque No.

· Bank Name

· Login Date

· Login time

· Status (Sanction / Pending)

· Branch credit Manager

· Credit Relationship Manager

· Regional Office

Sanction Summary:

· Channel

· Today Login

· Login to OPS

· Net Login

Rejection Summary:

· Applicant Name

· Applicant ID

· Application No.

· Amount Requested

· DMA

· Reason for Rejection

· Date of Rejection

Step IV

The file is logon by APS (Application Processing System) for sanction.

Here the customer eligibility for loan is checked and various activities like

RCU (Risk Commencement Unit), CAM (Credit Appraisal Memo), Sampling

Report, deviation Matrix (if needed) and Queries (if suppose to be by the

CPA). If the file is logon first time by APS it takes the following information

included with it:

· Sourcing (Applicant & Co-Applicant Details)

· Applicant

· Loan Details

· Reference

· Corporate CAM

· Credit Appraisal Remarks

· Application History

· Security Deposit

· Personal Details

· Address

· Work Details

· Income Expenses

· Bank

· Current Assets

· Liabilities

· Investment

· Life Style

· Salary and Repayment Details

RCU (Risk Commencement Unit):

The RCU check the documents attached with the application form to

get the knowledge about the validity of the documents. The RCU officer takes

all the documents into his consideration and check the eligibility of the

applicant for loan. It may be of the following two types:

1. RCU Screening: It is done mostly in case of Salaried Files. The

officer just checks the documents eligibility that these are fully capable and

right for applying a home loan.

2. RCU Sampled: In it the officer checks the documents and takes the

necessary copies in zerox and verifies these from where these are originally

issued.

Disbursement

Your loan will be disbursed after you identify and select the property or

home that you are purchasing and on your submission of the requisite legal

documents.

While you may be under the impression that the list of documents

asked for is rather extensive. Each and every single document asked for will

be verified and checked to ensure your safety.

This may take some time but ICICI Bank want to ensure a clear title

and will complete all the legal and technical verifications to ensure that you

have full rights to your home.

The 230-A clearance of the seller and / or 371 clearance from the

appropriate income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the

conveyance deed and on the investment of your own contribution, the loan

amount (as warranted by the stage of construction) will be disbursed by the

bank. The disbursement will be in favour of the builder / seller.

List of the Standard document for disbursement:

· Loan agreements

· Disbursement requests

· Post- dated cheques

· Personal guarantor’s documents, as the case may be

DISBURSEMENT

REQUEST FOR DISBURSENT RECEIVED BY

ICICI BANK

COUNSELOR EXPLIANS ANS COLLECTS

REQUIRED PROPERTY DOCUMENTS

DOCUMENTS ARE LEGALLY VETTED AND

STAGE OF CONSTRUCTION OF PROPERTY

IS VERIFIED

DISBURSEMENT CHEQUE IS PREPARED AND

DELIVERED BASED ON ABOVE CHECKS

Repayment of a Home Loan

· Repayment of loan is Equated Monthly Installments (EMI).

· EMI is calculated on Monthly Rent basis and comprises both of interest & principal. Starting EMI have more interest and less principal value while the later EMI have vice versa.

· EMI are prepaid either by :

· Post Dated Cheques

· Auto Debit Facility (if applicant is an ICICI Bank account holer)

· ECS

Pre EMI Interest:

· Pre EMI interest is calculated at simple interest and pre EMI interest

charges are to be collected on monthly basis.

· Pre EMI interest is to be paid from the days of disbursement (fully and

partially) till the date of commencement of EMI.

Charges:

· Processing and Administration Fees = 0.5%

· Part Pre-payment charges = Nil

· Full Pre-payment charges = 2% of the amount prepaid. However ICICI Bank reserves the right to change the rate as and when required.

What is Repayment Tenures?

Home equity loans Maximum loan tenure of 15 years

Office premise loan Maximum loan tenure of 15 years

Home loan Maximum loan tenure of 30 years

How is the Loan repaid?

All loans repayments are done via Equated Monthly Installments (EMI)

What is an EMI?

An EMI refers to an Equated Monthly Installments. It’s a fixed amount

which you pay every month towards your loan. It comprises of both principal

repayment and interest repayment.

When does the repayment start?

EMI payments start from the month following the month in which the full disbursement has been made.

How is the EMI paid?

The EMI is to be paid every month through Post Dated Cheques

(PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs,

then you will have to provide 36 PDCs upfront. The PDCs are to be dated on

the 1st of every month. However, if you receive your salary a few days later,

no problem. ICICI Bank provide the flexibility of the dating the cheques for the

7th of the months.

* ECS facility is available in selected cities only.

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and

outstanding dues will be charged as per the prevailing company policy. You

can replace old PDCs with new ones within 5-7 working days.

What is Pre EMI interest?

In the case of part disbursement of the loan, monthly interest is

payable on the disbursed amount. This interest is called Pre EMI Interest

(PEMI) and is monthly payable till the final disbursement is made, after which

is the EMIs would commence.

When do I pay PEMIs?

The first Pre EMI is payable by cheque by the end of the month in which the disbursement Is made and each subsequent PEMI at the end of every month till the commencement of EMI.

icici home loan finance

Documents

deputy managing director

joint managing director

rajan kumar dhakad

umesh kumar roll

equated monthly installments

narendra murkumbi mr

financial institutions play

credit norms specific