CHAPTER I

INTRODUCTION
1.1 INTRODUCTION
Corporation Bank is a public sector banking company headquartered in Mangalore, India.
The bank has pan-India presence with 8,000 functional units comprising 3200 branches, 3200+
ATMs and 4,000 branchless banking units as of 30 January 2015.
Corporation Bank has formulated a broad policy confining its CSR activities, in terms of
the guidelines in vogue, towards supporting various societal concerns aimed at overall welfare of
the society in the sphere of Health & Hygiene, Environment, education, Promotion of Art,
Culture and Sports, Public Utility Service Projects, Rural Development and Others. Considering
the response of students/educational institutions and in order to promote the idea of excellence
among students, the Bank has instituted awarding of gold medals to the best outgoing students
of select colleges in major cities.
As a part of the Centenary celebrations, the Bank set up fully equipped Rural Libraries in
100 villages in the country to develop them as Knowledge Centres. Every year new books worth
Rs.10,000 each are being supplied to these libraries to develop these libraries on periodical
review. Besides the above listed activities Bank continues to support institutions catering to the
blind, deaf, physically handicapped, aged, destitute, education, health and hygiene,
empowerment of women, providing training in selfemployment, rural development,
infrastructure development, support to educational institutions, etc.

1.2 HISTORY
Corporation Bank, the oldest banking institution in the erstwhile undivided South Canara
District of the Madras Presidency and one of the oldest banks in India, was founded in 12 March
1906 in the Temple Town of Udupi, by a small group of philanthropists led by Khan Bahadur
Haji Abdulla Haji Kasim Saheb Bahadur. The need to start this bank was felt because there was
no such facility at Udupi, an important trading centre next to Mangalore in South Canara district.
The indigenous banking was largely in the hands of a few rich private individuals and something
had to be done to provide relief to the common man from the clutches of the money lenders who
1

held full sway. The first branch of a modern bank established in the district was the Bank of
Madras, one of the three Presidency Banks, which set up its office in Mangalore in 1868 largely
to cater to the business needs of a few British firms dealing in export of plantation products. Its
agent used to visit Udupi once a fortnight or so, to do banking. Money remittances had to be
made only through postal medium.
To overcome these drawbacks and also to provide banking facilities for Udupi in particular
and the district in general, a cosmopolitan group of philanthropists led by Haji Abdulla Saheb
made a bold venture to start this institution. What inspired the founding fathers was the fervour
of "Swadeshism". For promoting the bank, the Founder-President made an appeal saying, " The
primary object in forming the Corporation' is not only to cultivate habits of thrift amongst all
classes of people, without distinction of caste or creed, but also habits of co-operation amongst
all classes. This is swadeshism', pure and simple and every lover of the country is expected to
come forward and co-operate in achieving the end in view." They rightly defined Swadeshism as
institution-building to aid economic activity through co-operation of all, shorn of distinction of
caste and creed.
The Canara Banking Corporation (Udupi) Limited, as the institution was called then, started
functioning as a Nidhi with a humble beginning. The initial capital was Rs.5,000/- and at the end
of the first day, its resources stood at 38 rupees - 13 annas and 2 pies.
The setting up of the Canara Banking Corporation Ltd. seems to have given a fillip to cooperative banking and also to regular banking elsewhere in the district. Between 1909 and 1917,
six co-operative banks came into being and during the decade immediately after the First World
War (191418) South Canara gave birth to as many as eight banks. It is to the credit of this bank
that despite two world wars, economic depression and stiff competition, the bank not only quite
survived, but also made satisfactory progress.
Having been started at Udupi, the bank first branched out by opening a branch at Kundapur
in 1923. The second branch of the bank was opened in Mangalore at Car Street in 1926. The
bank stepped into Kodagu district in 1934 by opening its seventh branch in Madikeri. In 1937,
the bank was included in the second schedule of Reserve Bank of India Act, 1934. In 1939, the
bank's name changed from "Canara Banking Corporation (Udupi) Ltd." to "Canara Banking
2

Corporation Ltd." The Bank graduated into a regional bank in 1945 when the total number of its
branches stood at 28. In 1961, it took over Bank of Citizens of Belgaum. In the same year, the
bank's administration office shifted from Udupi to Mangalore.
The second change in the name of the bank occurred in 1972, from Canara Banking
Corporation Ltd. to Corporation Bank Limited. The bank was nationalised in 1980 along with 5
other private sector banks. After nationalisation, the pace of growth of the bank accelerated and it
made all-round progress. Started as a common man's bank, it changed with the times to meet the
aspirations of the people but never swerved from its motto- Sarve Janah Sukhino Bhavantu
meaning Prosperity for All.
It endeavoured and succeeded in striking a right balance between traditional values and
innovative approach, personalised service and professional outlook and commercial
considerations and public concern. One of the unique achievements of the bank is that it has been
paying dividend continuously for the last 98 years since its inception. Today, with the most
modern technology-driven products and services and nationwide branches & ATMs, Corporation
Bank stands tall among the public sector banks in India and is hailed as one among the wellmanaged public sector banks with excellent track record in all the key parameters of banking.
The bank has the second largest ATM network in the public sector.
Corporation Bank had the honour of playing host to many a distinguished personality.
During the bank's Platinum Jubilee celebrations in 1976, the new administrative office building
at Pandeshwar Mangalore was opened by Sri B.D.Jatti, the then-Vice-President of India. The
bronze statue of Pandit Jawaharlal Nehru installed by the bank at the Traffic Island in front of its
Corporate Office at Pandeshwar Mangalore, was unveiled by Mr. Justice E.S. Venkataramaiah,
the then Chief Justice of India. In 1992, R. Venkataraman, the then-President of India, visited the
bank to inaugurate its 85th anniversary celebrations and 60th anniversary of the bank's
commencement of operation in Tamil Nadu state. In 1996, Mr. Justice A. M. Ahmadi, the thenChief Justice of India, visited the bank to deliver the 90th year commemorative lecture.
Corporation Bank House, the new premises of the bank's Car Street Mangalore branch, was
inaugurated by Dr. Manmohan Singh, who was then the Union Finance Minister. Dr. C.
Rangarajan, the then Governor of Reserve Bank of India, launched the prestigious deposit
product Corp Classic during his visit to the bank's corporate office in 1997. The bank's new
3

Millennium Building was inaugurated by Union Minister of State for Finance Vikhe Patil in
2000. In the same year, Union Finance Minister Yashwant Sinha launched the bank's CorpFast
product at the Corporate Office.
Corporation Bank was the first public sector bank, other than State Bank of India ascociates,
to achieve 100% CBS (Core Banking Solutions) developed and implemented by Laser Soft
Infosystems Limited, Chennai.

1.3 HUNDRED AND TEN YEARS OF BANKING

Corporation Bank completed hundred and ten years of existence on 12 March 2015. On the
occasion of 107th Foundation Day celebrations held at TMA Pai Hall in Mangalore, five eminent
personalities who made immense contributions to the society were honoured by the bank. They
include, Dr. B.M. Hegde, eminent physician, Dr. B. Ramana Rao, eminent cardiologist, Mrs. Ela
Bhatt, social entrepreneur and founder of SEWA, Dr. B.R. Shetty, entrepreneur and Dr. Kadri
Gopalnath, eminent saxophonist.
A new application for internet banking in iPad was launched on this occasion. A new caller
tune for the bank for Bank's mobile/landline phones was also inaugurated in the function. The
Centenary celebrations were launched by Shri V. Leeladhar, Deputy Governor, Reserve Bank of
India with the Bank's Foundation Day lecture on 12 March 2005.
As a part of the Bank's centenary celebrations, a number of programmes and projects were
planned and executed. As a first step, the Bank has launched the Corp Kissan Card -debit card
tied up with VISA international, to enable the farmers make timely purchases for agricultural
operations.at Yeshwantpur-Malur in Kolar District on 13 March 2005. A modern public library
was dedicated to the citizens of Mangalore in DK District, the birthplace of the Bank by Shri P.
Chidambaram, Honourable Union Finance Minister on 2 March 2006. The library building also
houses a Numismatic Museum and a multi purpose hall for intellectual activities. The Bank has
also set up libraries in 25 villages and given away scholarship to 100 meritorious students of
such villages for the pursuit of their higher education. Such libraries will be set up in 75 more
villages in a phased manner. Corporation Bank - A Corporate Journey, the history of the Bank
and Haji Abdullah Saheb a biography of the Bank's Founder President have been published on
the occasion of the valedictory function of the Bank's Centenary Celebrations.
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1.4 PROFILE OF THE BANK

Company

Corporation Bank

Branches

146/2, New scheme Road,

Pollachi 642 002,

Tamilnadu.

General Manager

K.Murugesan

Members

1861

Deposits

Rs.4,11, 26,908.03

Loan

3,36,65374

Share amount

Rs.10.19.255

Net Income

3.30,89,197

Phone

04259 228632, 226959

Email

cb0170@corpbank.co.in

Web

www.corpbank.com

CHAPTER II
ORGANISATION CHART
Manager

Assistant Manager

Sub - Staf

Sweeper

Security

Peon

CHAPTER III
FUNCTIONS OF CORPORATION BANK
3.1 TYPE OF DEPOSITS

Fixed deposit
Moneyflex Deposit
Recurring Deposit
Flexible Recurring Deposit
Corp Tax Saver

3.1.1 Fixed deposit

Scheme
A regular income scheme in which interest can be paid at regular intervals viz. monthly,
quarterly, half yearly or yearly at the option of the depositor.
Open:

An Individual in his/her own name.

Individuals in their joint names with suitable repayment instructions.
Minor represented by parents / guardian.
Clubs, Societies, Associations, Educational Institutions, Trusts, Firms, Partnerships, Joint
Stock Companies, Executors, Administrators, HUFs, Govt. Departments, etc.

Period of Investment
7 Days to 120 months
Amount of Deposit

Minimum Rs.500/- in Rural & Semi Urban Branches & Rs.1,000/- in Urban, Port town &

Metro Branches.
No Maximum Limit on deposit.

Rate of Interest
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The rate of interest depends on the period of deposit, payable at the rate as decided by the
Bank from time to time.
Interest Payment Frequency
Monthly / Quarterly / Half Yearly / Yearly as per the option of the Depositor
TDS on Interest Amount
TDS shall be deducted at applicable rate on entire interest amount once it crosses
Rs.10,000/-during the financial year
Add-ons

Nomination facility
Premature closure facility as per the rules lay down by the Bank.
Loan facility up to 90% on the deposit, while for 3rd party deposit, it is up to 75%

3.1.2 Moneyflex Deposit

Scheme
A Deposit Scheme which allows withdrawal of part of the deposit in units of Rs.1,000/at any time, without the necessity of prematurely closing the entire deposit account.
Open:

An Individual in his/her own name.

Individuals in their joint names with suitable repayment instructions.
Minor represented by parents / guardian.
Clubs, Societies, Associations, Educational Institutions, Trusts, Firms, Partnerships, Joint
Stock Companies, Executors, Administrators, HUFs, Govt. Departments, etc.

Period of Investment

For Money Flex KCC & FD

7 Days to 120 months

Amount of Deposit

Minimum Rs.5000/- and thereafter in multiples of Rs.1,000/-.

No Maximum Limit on deposit amount.

Rate of Interest
The rate of interest depends on the period of deposit, payable at the rate as decided by the
Bank from time to time.
Interest Payment Frequency

In case of Money Flex FD, interest is paid at quarterly intervals till maturity.
In case of Money Flex KCC: Interest is compounded quarterly and is paid on maturity.

Withdrawals
No need to close the entire deposit, if part of the amount is required. Part of the deposit in
units of Rs.1,000/- can be withdrawn prematurely while continuing the remaining deposit.
Add-ons

Nomination facility
Premature closure facility as per the rules lay down by the Bank.
Loan facility up to 90% on the deposit, while for 3rd party deposit, it is up to 75%

3.1.3 Recurring Deposit

Scheme
An ideal way to plan for the future needs. Best way to save a fixed sum every month for a
fixed period and get a lump sum amount on maturity, along with interest rate payable for term
deposit.
Open:

An Individual in his/her own name.

Individuals in their joint names with suitable repayment instructions.
Minor represented by parents / guardian.
Clubs, Societies, Associations, Educational Institutions, Trusts, Firms, Partnerships, Joint
Stock Companies, Executors, Administrators, HUFs, Govt. Departments, etc.

Period of Investment
12 months to 120 months.
Amount of Deposit

Minimum Rs.50/- per month in Rural & Semi Urban Branches & Rs.100/- per month at

all other branches.

Deposit to be made in multiples of Rs.25/-, subject to the minimum amount.
No Maximum Limit on deposit.

Rate of Interest
The rate of interest depends on the period of deposit, payable at the rate as decided by the
Bank from time to time.
Interest Payment Frequency
Interest is compounded on quarterly basis, credited to the account at the end of every
financial year and paid on maturity.
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Penalty
Penalty @ Rs. 1.50 per Rs. 100/- per month is applicable, if any installment is not paid
for the relevant month.
TDS on Interest Amount
TDS is applicable as per norms.
Add-ons

Nomination facility
Premature closure facility as per the rules lay down by the Bank.
Loan facility up to 90% on the deposit

3.1.4 Flexible Recurring Deposit

Scheme

A flexible deposit in which the depositor can save a minimum stipulated amount of

money every month for 3 years.

Option to remit up to 10 times of the stipulated monthly installment in a month.
Option to withdraw part of the Deposit at the end of 1st and 2nd year.

Open:

An Individual in his/her own name.

Individuals in their joint names with suitable repayment instructions.
Minor represented by parents / guardian.
Clubs, Societies, Associations, Educational Institutions, Trusts, Firms, Partnerships, Joint
Stock Companies, Executors, Administrators, HUFs, Govt. Departments, etc.

Period of Investment
Fixed period of Three years
Amount of Deposit

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Minimum: Rs.500/- p.m. and thereafter in multiples of Rs.100/No Maximum Limit.

Rate of Interest
The rate of interest depends on the period of deposit, payable at the rate as decided by the
Bank from time to time.
Interest Payment Frequency
Interest is compounded on quarterly basis and ploughed back into the principal at the end
of every financial year and paid on maturity.
Additional Deposit
Up to 10 times the initial Deposit Amount is permitted every month.
Penalty
Penalty @ Rs. 1.50 per Rs. 100/- per month is applicable , if base amount installment is
not paid for relevant month.
TDS
TDS is applicable as per norms.
Withdrawals
On completion of 1st year :50% of the accumulated principal
On completion of 2nd year :50% of the remaining principal
If no withdrawal is made on completion of first year, One withdrawal at the end of 2nd
year up to 75% of the 1st year deposit amount + 50% of 2nd year deposit amount is allowed.
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Add-ons

Nomination facility
Premature closure facility as per the rules lay down by the Bank.
Loan facility up to 90% on the deposit

3.1.5 Corp Tax Saver

Open:
Individuals, either single or jointly with other individuals including minors represented
by guardian & HUF. The deposit should not be accepted from other type of customers like
associations, clubs, partnership, Limited Company, etc.
Period of Investment
5 years [Lock in Period]
Amount of Deposit
The depositor can start investing with a minimum of Rs. 100/- and in multiples of Rs
100/- up to a maximum of Rs 1,50,000 in a year - any number of times.
Rate of Interest

At the latest prevailing interest rates for fiveyear term deposit from time to time.
Additional interest is paid to Senior Citizens as payable to term deposits.

Premature Closure/Loan against the deposit

No premature closure /loan is permitted and also deposits cannot be taken as collateral
security for any other facility. However, premature closure is permitted in case of death of the
depositor.
Nomination facility

13

Nomination facility is available under the scheme as per the rules applicable from time to
time. No nomination shall be made in respect of term deposit held by or on behalf of minors.
Tax deduction at source
Tax will be required to be deducted at source, as in the case of normal term deposits and
in applicable cases, branches can accept self-declaration in Form 15G or 15H as the case may be,
from the depositor.
Permanent Account Number
Corp Tax Saver Plus deposits cannot be opened without PAN. The signature of the
Assesse should be taken in the passbook and on the Annual Statement containing the Certificate
clause, before handing over the passbook/statement.
Tax Exemption
The depositor can claim exemption under Section 80(C) for the amount which he /she
had deposited under this scheme.
Age of the Account Holder
Not to exceed 65 years as on date of opening of the account to get PA cover
Passbook
Passbook would be issued to the customer recording the credits made into the account,
along with maturity value and rate of interest.
Personal Accident Insurance Cover
FREE Personal Accident Insurance Cover of Rs. 1.00 lakh per depositor for one year.

3.2 TYPE OF LOANS

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Corp Home
Eligibility

Resident individual either singly or jointly /NRI/PIO , between 18 to 65 years, with

independent and regular source of income.

In case of property jointly owned with close relatives , all joint owners shall join as co

applicants irrespective of their age.

Including spouse, maximum of two close relatives [ Father, Mother, Spouse, Daughter,

Son] may join as co applicant to supplement repayment capacity.

In case of salaried person, applicant/s shall be confirmed in the present service & shall
have two years of aggregate service in previous and present employment together

Project Cost
Purchase price only. Registration Charges, Stamp Duty, Documentation Charges, VAT &
Service Tax not be included in the project cost.
Purpose

For construction of house/flat, purchase of ready built house/flat/flat under construction.

Take over of housing loan from other banks/Institutions.
Purchase of site and construction of house subject to certain terms and conditions.

Loan Amount
Loan upto Rs.500 lakhs based on centres. [ in case of loan for purchase of site and
construction of house, maximum loan for purchase of site/land is Rs.50 lakhs based on centres ].
Margin
10% to 25% based on loan amount.

Security

Mortgage of house/flat purchased out of bank finance. Age of the property shall not
exceed 30 years.
15

Third party guarantee is not mandatory. Co application of spouse is mandatory.

In case of Divorcees/unmarried, co application of parents is required.
Rate of Interest
Rate of interest is linked to the Base Rate & subject to revision from time to time Fixed
rate option is also available. Fixed rate is subject to reset.
Repayment

Loan is repayable in maximum of 30 years including moratorium of max- 18 months.

Repayment period shall not exceed retirement age for salaried class and 70 years of age

for other than salaried class.

EMI/Notional interest of existing and proposed loan together shall not exceed 50% to
70% of net income of the borrowers.

Other Conditions

Property shall be in command area of the branch [ i.e within 15 kms to 50 kms based on

centre/ city ]
Second loan for enhancement also available based on merits of the case.
For repair/renovation, separate loan scheme is available.
Take over of loan from other banks/institutions is subject to the Bank's policy
Flexi-repayment option is also available for salaried class.
Insurance of property is mandatory and premium to be borne by the borrowers.
Life insurance of the borrower is available at the option/cost of the borrower.

16

Corp Personal
Eligibility

Employees whose salary is routed through the Branch.

Pensioners drawing pension through the branch.
Other than salaried class having regular dealings with the branch.

Purpose

Demand loan to meet genuine personal expenses.

Loan Amount

Maximum Rs.2 lakhs a) Salaried class: Where salary is routed through the Branch 6

months net salary.

Where in addition to routing of salary, employer undertaking letter is also available -

Maximum loan - 12 times of take home pay. b)

Pensioners drawing pension through our Branch - Maximum loan - 6 months pension. c)
In case of individuals with income other than salary / pension, maximum loan shall be
25% of the gross annual income.

Security
Suitable Co-applicant / third party guarantee to be provided.
Rate of Interest
Floating rate of interest is linked to the Base Rate & subject to revision from time to time.
Repayment
36 Months for salaried class and 60 Months for other than salaried class EMI/Notional
interest of existing and proposed loan together shall not exceed 50% to 70% of net income based
on net income of the borrower.

17

Corp Vehicle
Eligibility

Individuals, Professionals/ Businessmen/ Salaried class & Others, NRIs, Sole

Proprietorships, Partnership Firms, HUFs, Companies/Trusts/Institutions are eligible.

Minimum NET annual income of Rs.0.50 lakhs for two/three wheelers and Rs.1.20 lakhs

for four wheelers.

Cash accruals/Depreciation also may be added to income, Close relative may join to

supplement repayment capacity.

In case of Company/Firm/Trust, Directors/Partners/Trustees having regular/ independent

income may join as co-applicant/s to supplement repayment capacity.

In case of salaried class, applicant/co applicant shall be confirmed in the service.

Project Cost
Cost of the vehicle is inclusive of Accessories/ Registration/Road tax/Insurance charges
for new vehicles.
Purpose

For purchase of 2/3/4 wheelers/heavy Road/ water transport vehicles /for Personal/

Transport/ Business/Commercial purpose.

Loan for second hand vehicle not older than 3 years from the date of registration

Loan Amount

Two Wheeler : Rs.1 lakh per vehicle.

Three Wheeler: Rs.2 lakhs per vehicle
Four Wheeler: Rs.1 crore per vehicle.
Heavy vehicle : Rs.5 crore per vehicle

Margin
40% in case of old vehicles
Security

18

Hypothecation of the vehicle. Third party guarantee is discretionary.

Rate of Interest
Floating rate of interest is linked to the Base Rate & subject to revision from time to time.
Repayment

Two Wheeler :36 months, Three Wheeler: 60 months,

Four wheeler : 84 months Repayment period shall not exceed retirement age of the

borrower in case of salaried class and 70 years of age in case of other than salaried class.
In case of transport operators, repayment capacity is arrived at based on DSCR.

Corp Vidya
Eligibility

Student should be an Indian national.

Should have passed previous qualifying examination.
Should have secured at least 60% marks [ 55% for student belonging to SC/ST category ]

in the previous qualifying examination.

Should have secured admission to a higher education course in recognized institutions in
India or Abroad through Entrance test / Merit based selection process/through
Management quota after completion of HSC [10+2 or equivalent]

Purpose
To meet expenses related to pursuing studies in India and abroad
Loan Amount
Study in India upto Rs.10 lakhs, Study Abroad : upto Rs. 20 lakhs

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Margin
Up to Rs. 4 lakhs : -NIL- Above Rs.4 lakhs : Studies in India 5%, Studies abroad 15%
Scholarship/Assistantship to be in included in margin.
Security

Up to Rs.4.00 Lakh : Co-obligation of Parent/s, No other security.

Above Rs.4.00 Lakh & up to Rs.7.50 Lakh : Co obligation of Parent/s together with
collateral in the form of suitable third party guarantee with a net worth of at least equal to

loan amount.
Above Rs.7.50 Lakh : Co- obligation of Parents together with tangible collateral security

along with the assignment of future income of the student for payment of instalments.
Loan shall be fully secured after maintaining prescribed margin on respective securities

offered.
In case of married person, co obligant can be either spouse, or the parents or parents -inlaw.

Rate of Interest

Floating rate of interest is linked to the Base Rate & subject to revision from time to time

Simple interest will be charged during repayment holiday period.

Concession in rate of interest at 25 bps below the applicable card rate is extended to

SC/ST/Women beneficiaries for fresh loans sanctioned/ disbursed on or after 15.08.2008.

Concession in rate of interest at 50 bps (inclusive of 25 bps available for SC/ST/Women)
below the applicable card rate for girl students for new loans sanctioned/ disbursed

w.e.from : 04.03.2009.
Interest concession of 0.50% is extended to Physically Challenged students for loans
initially disbursed on or after 20.09.2010

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Repayment
For loans upto Rs.7.5 lakhs : 10 years Fixed excluding initial repayment holiday For
loans above Rs.7.5 lakhs : 15 years -Fixed excluding initial repayment holiday Repayment
holiday is the course period + 1 year OR 6 months after getting the job whichever is earlier.

Corp Mortgage
Eligibility

Individuals in the age group of 18 - 65 years owning residential /Commercial property /

Industrial property, land and/or building and who are Income Tax Assessees. NRI,

Partnership Firms, Companies , HUF and Trusts are also eligible.

Maximum of two close relative/s may join as co applicant/s to supplement repayment

capacity
In case of Firms/Companies/Trusts/HUF, Partners/Directors/ Trustees/Co- Parceners with
regular & independent income may join as Co- applicants to supplement repayment

capacity.
Loan against third party property [ i.e property owned by friend, non-relative etc..] is

strictly NOT permitted.

Net monthly income of Rs.20,000/- for salaried Individuals & Rs. 2,50,000/- per year for

other than salaried class.

Cash accruals/Depreciation also may be added to income, in case of borrowers other than
salaried class.

Purpose
To meet personal expenses like marriage, medical, etc., & also for business requirements.
Loan Amount
The maximum loan amount shall not exceed 10 times of the Net annual Income
Minimum Rs. 2 lakhs & Maximum Rs.500 lakhs based on location of the property.

21

Margin
50% on immovable property.
Security

Mortgage of immovable property against which the loan is sought.

Age of the property to be mortgaged shall not exceed 20 years.
Third party guarantee is not mandatory

Repayment

Term loan is repayable within the maximum repayment period of 7 to 10 years.

Running account facility is available for other than salaried class and repayable on

demand subject to annual review/renewal.

EMI/Notional interest of existing and proposed loans shall not exceed 50% to 70% of net

income based on income of the borrowers.

Repayment period shall not exceed retirement age of the borrower in case of salaried
class and 70 years of age in case of other than salaried class.

Padho Pardesh Scheme

Eligibility

The student should have secured admission in the approved courses at Masters, M.Phil or

Ph.D levels abroad for the courses shown at Annexure

He/ She should have availed loan from a scheduled bank under the Education Loan
Scheme of the Indian Banks Association (IBA) for the it purpose.

Purpose
This is a Central Sector Scheme to provide interest subsidy to the student belonging to
the communities declared as minority communities in terms of section 2 (c) of National
Commission for Minorities Act, 1992, on the interest payable for the period of moratorium for
the Education Loans under the Scheme of Interest subsidy on Educational Loans for Overseas
Studies to pursue approved courses of studies abroad at Masters and Ph.D levels.
Rate of Interest
22

Under the scheme, interest payable by the students availing of the education loans of the
IBA for the period of moratorium (i.e. course period, plus one year or six months after
getting job, whichever is earlier) as prescribed under the Education Loan Scheme of the

IBA, shall be borne by the Government of India.

After of period of moratorium is over, the interest on the outstanding loan amount shall
be paid by the student, in accordance with the existing Educational Loan Scheme as may

be amended from time to time.

The Candidate will bear the Principal installments and interest beyond moratorium
period.

Corp Rental
Eligibility

The Scheme envisages financing the owner of the commercial properties against future

rent receivables for the unexpired period of lease specified in the lease agreement.
Eligible applicants for financing under the Scheme would be Individuals/ Partnership
Firms/Corporates/ Trusts/ HUFs, owning commercial buildings let out to reputed
organisations/ institutions in commercial /industrial/software sector, where the unexpired

period of lease is generally more than three years.

The Lessee should be reputed companies i.e Private/Public Limited companies or MultiNational Companies, Public Sector Undertakings/Banks, State/Central Government

Departments etc.
The lease agreement shall be registered for full tenor of lease, irrespective of loan tenor

Purpose
The loan may be availed for any productive purpose such as taking up new projects,
business or towards contingencies or to meet domestic/personal/any other commitments.

23

Loan Amount

The minimum loan amount is Rs. 5.00 lakh

The loan amount shall not exceed 70 % of the net rent receivables for the unexpired
period of lease not exceeding 120 months.

Margin

On lease Rentals: 30 %
On immovable property taken as security: 35%

Security

Charge over rent receivables.

Mortgage of building whose rent is charged to the bank.
Age of the Building shall not be more than 15 years.
The building mortgaged to the bank and whose rent is charged to the bank for the loan
availed against the same, should be comprehensively insured with bank clause.

Guarantee

In the case of loans to Partnership Firms, Trusts and Private Ltd Companies, personal

guarantee of Partners, Trustees and Promoter Directors, respectively is required

In all other cases, other than corporates, a suitable third party guarantee is required

Rate of Interest

Repayment
Loan shall be repaid in Equated Monthly Instalments within the unexpired period of lease
or 120 months (maximum).
Other Conditions

Corp Professional
24

Eligibility

Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

25

Corp Vyapar
Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

26

Corp Ghar Shobha

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

27

Corp Tutor Fee

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

28

Corp Home Premium Nri

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

29

Corp Shelter
Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

30

Corp Shubha Vivah

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

31

Corp Doctor Plus

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

32

Corp Ghar Sansar

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

33

Corp Apni Dukan

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

34

Corp Site (for purchase of allotted site/plot)

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

35

Corp Site (for Application Money)

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

36

Corp Skill Loan

Eligibility
Project Cost
Purpose
Loan Amount
Margin
Security
Rate of Interest
Repayment
Other Conditions

37