VLP.pdf

Introduction This policy is going to replace the existing policies applicable for CV/CE/FE/CAR loan products, intended to do a consolidation of policies related to vehicle loans, recategorization of existing categories, simplification of policy norms, revision of credit empowerment/deviation matrix...

Introduction This policy is going to replace the existing policies applicable for CV/CE/FE/CAR loan products, intended to do a consolidation of policies related to vehicle loans, recategorization of existing categories, simplification of policy norms, revision of credit empowerment/deviation matrix which would help us in enhanced understanding for the field team on the policy without compromising on the credit quality. Customer Category Product Existing Category Proposed Category Captive With Financials Captive Captive Without Financials CAT B - Prior Vehicle W/O RTR CAT C - FTU / Asset Based First Time Buyer/ User CAT D - FTU / Agri Based CAT E - Driver cum Owner & GC Commercial Vehicle CAT A - Prior Vehicle With RTR Retail 1-5 Fleet 1-3 vehicles Fleet 4-10 vehicles Retail 6-9 Fleet above 10 vehicles Strategic – 10 & above School Bus Funding Existence of 2 yrs above with 500 students 1  School Bus Funding Existence of 3 yrs School/College Bus Funding above with 750 students School Bus Funding Existence of 5 yrs above with 1000 students Product Existing Category Proposed Category Captive With Financials Captive Without Financials Green Channel Commercial Vehicle – SCV / FTU AGRI land ownership / Own House Captive/Non-Captive Pickup property Without DL Prior exp of driving 3w / CV Prior Vehicle Ownership 3Wheeler / CV Captive With Financials Captive Captive Without Financials First Time Buyer First Time User/Borrower Existing Customer with similar asset Construction Equipment Retail 1 -5 Retail (1- 2 Vehicles) Retail (3 - 5 Vehicles) Retail 6-9 Principal Operator Strategic – 10 & above CVs/CEs Upper Retail Agri Cat-A Farm Equipment Agri Cat-B Agri Based Agri Cat-C 2 VEHICLE LOANS- CV/CE/FE/CAR  Green Channel Non-Captive (Commercial Usage) Prior vehicle owner Captive User Captive Product Existing Category Proposed Category Agri based – NIP Agri based – Normal Asset Based – NIP Car Own Board/T Board Banking Prior Vehicle ownership (CV/CE) T Board/Self Employed/Salaried SEP / SENP - Income based Repayment Green Channel Salaried – Income based (SAL) 3 VEHICLE LOANS- CV/CE/FE/CAR Customer Categories definitions & Basic assessment Criteria Captive: Any Trader or Manufacturer and service provider having Core Business activity is other than transportation End Use of vehicle is for Transportation of Own Goods Experience & Income to be validated based on Core Business activity, Business profile and model applied should be matched. FTU/FTB: Customers who own single vehicle without Valid RTR or having transport experience as FTBs. Drivers turning as owners are included as FTBs. Customers who are not having transport experience and purchasing the vehicle for the first time is classified as FTU. Here Deployment of the vehicle is for transportation of goods -manufactured /produced by others and they will get transportation income Credit assessment for these customers would be done basis the capacity of the customer to effectively deploy the proposed vehicle in the market, proposed type of deployment and its viability. Retail 1-5/Retail 6-9: Customer’s owning minimum one commercial vehicle/Construction Equipment up to 9 vehicles will fall under this category with Minimum Ownership vintage of vehicles as mentioned in Variable As Category name suggests -1 to 5 vehicles owner will be classified in Retail 1-5 and 6 to 9 vehicle owners will classify in Retail 6 to 9 category Credit assessment would be done basis existing fleet ownership, repayment track on existing loans and viability of the vehicle. These segment customers will be operating mixed fleet of New Vehicles and Used Vehicles; hence general requirement would be refinanced as well as repurchase finance. 4 VEHICLE LOANS- CV/CE/FE/CAR Strategic (10 & Above vehicles ownership): Transporter Owning Fleet of 10 assets or more will fall under this category and having Minimum 5 vehicle Ownership of Minimum 2 years Funding assessment for Strategic transporters customers would be done basis the Fleet Owned, free fleet against finance, Fleet expansion and Repayment Tracks Mostly these customers would be approaching us for refinance on finance free CV/CEs; credit manager needs to understand end usage of funds. Mostly they would be requiring funds for working capital Requirements like Maintenance of existing fleet , replacement of tyres , making security deposits for obtained contracts from clients etc. If end of the funds is speculative in nature, then we should avoid funding. Financials would be Required if Post funding exposure is Crossing 300 Lacs, Analysis of key financial parameters need to be done as mentioned in the policy. In case of if exposure is below Rs.300 Lacs, assessment would be done basis existing fleet ownership, FFR ratio and repayment tracks. School/College bus funding: School/Colleges would generally purchase buses for transportation of students, funding requirements would be covered under this segment. Credit Appraisal largely done based on the no of students’ strength, college/school recognition from the respective departments, fee collections, financials and repayment tracks if any available. Car: Funding on Cars Can be extended for personal for Self-employed and salaried Customers Taxi funding -Cars Can be extended for Self-employed segment Farm Equipment: Agri Based: As tractors largely used in agricultural activities, this segment covers funding on farm equipment’s based on the Agri land ownership. Appraisal would be done basis the Agri land ownership. Captive and Non-Captive (Commercial Usage) This would cover the tractors which are used for captive usage and commercial purpose (hiring) would be covered in this category. 5 VEHICLE LOANS- CV/CE/FE/CAR KYC Norms Customer Type and features to be Documents / Information verified Individuals A certified copy of the following documents to be obtained for Legal name / any other name used verifying identity and address: Correct Permanent and Current PAN or Form 60 Address proof of possession of Aadhaar Number Nature of business & financial status passport driving license Voter's Identity Card issued by the Election Commission of India job card issued by NREGA duly signed by an officer of the State Government Letter issued by the National Population Register containing details of name, address The documents issued by the Government departments of foreign jurisdictions and letter issued by the Foreign Embassy or Mission in India – only for Foreign Nationals as proof of address In case the abovementioned documents do not contain the current address, pending updation of current address on such documents, a certified copy of any of the following documents to be obtained, which will be valid only for 3 months: utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill); property or municipal tax receipt; pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address; letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector 6 VEHICLE LOANS- CV/CE/FE/CAR  undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation - Documents with respect to nature of business and financial status as may prescribed by Management Committee from time to time - Recent Photograph - KYC Template / information as prescribed by the Reserve Bank of India for uploading data with Central KYC Record Registry - Such other documents as may be prescribed from time to time In this Annexure obtaining a certified copy by the Company shall mean comparing the copy of the document so produced by the Customer with the original and recording the same on the copy by person authorized by the Company. Where a person submits a proof of possession of Aadhaar Number containing his Aadhaar Number for the purpose of proof of identity and / or address, it shall be ensured such person redacts or blacks-out his Aadhaar Number through appropriate means. The use of Aadhaar, proof of possession of Aadhaar etc., shall be in accordance with the Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act, the Aadhaar and Other Law (Amendment) Ordinance, 2019 and the regulations made thereunder and the RBI Directions. Sole Proprietorship Documents to be obtained from Proprietor: Correct address / place of business of Please refer to documents to be obtained from “Individual the proprietor and firm Customers” Business / activity of the firm Contact Point Verification Documents to be obtained from the Proprietary Firm: Any two of the following documents as proof of business / activity in name of proprietary firm: Udyam Registration certificate Certificate/license issued by the municipal authorities under Shop and Establishment Act. Sales and income tax returns. CST/VAT/GST certificate (provisional / final). Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities. IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT/ License/certificate of 7 VEHICLE LOANS- CV/CE/FE/CAR  practice issued in the name of the proprietary concern by any professional body incorporated under a statute Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated/acknowledged by the Income Tax authorities. Utility bills such as electricity, water, and landline telephone bills Where the Company is satisfied that it is not possible to furnish two such documents, the Company may accept only one of those documents as proof of business/activity; provided contact point verification has been undertaken and such other information and clarification has been collected which would be required to establish the existence of such firm, and the Company shall confirm and satisfy itself that the business activity has been verified from the address of the proprietary concern. - KYC Template / information as prescribed by the Reserve Bank of India for uploading data with Central KYC Record Registry - such other documents as may be prescribed from time to time Partnership Documents to be obtained from beneficial owner, managers, Legal name officers or employees holding an attorney to transact on behalf of Address the Partnership Firm: Names of all partners and their Please refer to documents to be obtained from “Individual address Customers” -Ultimate Beneficial Owners Documents to be obtained from the Partnership Firm: -Telephone numbers of the firm and - Registration certificate partners - Partnership deed - Permanent Account Number of the Partnership Firm - KYC Template / information as prescribed by the Reserve Bank of India for uploading data with Central KYC Record Registry - Such other documents as may be prescribed from time to time Trust Documents to be obtained from beneficial owner, managers, Names of trustees, settlers, officers or employees holding an attorney to transact on behalf of beneficiaries the Trust: Telephone/fax numbers - Please refer to documents to be obtained from “Individual Customers” Documents to be obtained from the Trust: Registration certificate Trust Deed 8 VEHICLE LOANS- CV/CE/FE/CAR  Permanent Account Number or Form No.60 of the Trust KYC Template / information as prescribed by the Reserve Bank of India for uploading data with Central KYC Record Registry Such other documents as may be prescribed from time to time In case of Non-Profit Organization, ICFL to ensure the customer is registered on the DARPAN portal of NITI Aayog. School/ College affiliation certificate/recognition certificate to be collected Companies Documents to be obtained from beneficial owner, managers, - Name of the company, directors & officers or employees holding an attorney to transact on behalf of promoters the company: - Principal place of business - Please refer to documents to be obtained from “Individual -Ultimate Beneficial Owners Customers” - Mailing address of the company - Telephone/Fax Number Documents to be obtained from companies: - Certificate of incorporation; - Memorandum and Articles of Association; - Permanent Account Number of the company - A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact on behalf of the company; - -KYC Template / information as prescribed by the Reserve Bank of India for uploading data with Central KYC Record Registry - Such other documents as may be prescribed from time to time Juridical persons not specifically A copy of each of the following documents shall be obtained: covered in the earlier section, such as - Document showing name of the person authorized to act Government or its Departments, on behalf of the entity; societies, universities and local - For documents to be obtained from person holding bodies like village panchayats or who attorney to transact on behalf of the entity - Please refer purports to act on behalf of such to documents to be obtained from “Individual Customers” juridical person or individual or trust - Such documents as may be required by the Company to establish the legal existence of such an entity. Legal existence - KYC Template / information as prescribed by the Reserve Contact Point Verification Bank of India for uploading data with Central KYC Record Identity of Person purporting to act on Registry behalf on its behalf - Such other documents as may be prescribed from time to time 9 VEHICLE LOANS- CV/CE/FE/CAR General Norms applicable for Vehicle Loan Funding Sr Details Criteria No Duly signed by the Applicant, Co-Applicant & the Guarantor. Application to be 1 Application Form filled. No usage of whitener or overwriting in the application form. Proforma invoice is required from authorized dealer for new vehicles. 2 Proforma Invoice For body funding cases-body proforma Invoice to be collected from body builder. a. Individuals b. Proprietary Concerns (Proprietor individual capacity to be takes as Co Eligibility applicant and additional co applicant or guarantor also to be taken) 3 Customer Profile c. Partnership Firm/LLP d. Private / Public Limited Companies e. Educational Trusts/ Society/Co Op Society Minimum age limit - 21 years (should have completed 20 years) & maximum age limit - 65 years (at the time of termination of loan tenure) for applicant Age of applicant(s) only. 4 {In case of In case applicant age is greater than 65 years but less than 80 years, co- individuals} applicant is required who is satisfying the age norms. For individuals/proprietorship, any of the close relatives to be taken as co- applicant Close relative as defined below: Close Relative - Father, Mother, Spouse, Son, Daughter, Brother, Sister , Son-in-law, and Daughter-in-law, Father-in-law & Mother – in – law. Co-Borrower 5 For Non-Individuals Managing Partner – in case of Partnership Firms Director – in case of Limited Company Chairperson or secretary or trustee - In case of Trust / Society 6 Loan amount Minimum loan amount Rs.75000/- excluding cross sell/MI 7 Geo limit Approved Geo limit is 75 kms from branch office for all products Age of the asset End of the tenor Up to 15 Years for all Products. (From Mfg. month & Yrs.) (Applicable for 8 In Delhi & NCR, Diesel vehicles more than 10 years at the end of Loan tenure Used Vehicle) to be excluded for funding Equated Monthly Installments only. Quarterly & Half Yearly allowed for Tractor Repayment Product (FE). 9 frequency Front end EMI is also acceptable wherein Front-End EMI would be higher in initial period then equated EMI Repayment Track Wherever repayment track is required in the norms as criteria of funding, the 10 Record same should be minimum of 12 months. 10 VEHICLE LOANS- CV/CE/FE/CAR  Track should be live or closed within last 12 months Track validation should be either of below ways Statement of account 12 Months EMI Clearance via bank statement with Repayment Schedule/any other statement confirming Loan, EMI, Start date, End date and other details Validation of track through bureau (Ex. CIBIL) Last reporting date should be less than 90 days from the login date Reporting should be reflecting as numerical and not as ‘STD’ or ‘XXX’ CIBIL where reports reflecting DPDs upto 30 days can be considered, Peak delay and average delay calculations would be done from CIBIL report, need not insist on the physical RTR. For ex string reflecting dpd like 001,009,025,029 can be accepted as valid credit reference as reflected in cibil report. Reported track should be commercial in nature for ex. CV/CE/FE. whereas for captive customer and car loan customer Non- commercial Tracks Like HL, PL, Auto, Biz Loan etc. can be considered Tracks Reported should be in Individual capacity, Joint capacity loans can be considered provided they are in close relative name. Repayment track should be ETR, ATR and PTR Definition of ETR/ATR Excellent Track Record (ETR) AD of = 650 for Individual Applicant/Co-applicant and New to Credit i.e CIBIL For Non-Individuals, corporate CIBIL to be taken. Co Applicant One of the Family Member as per Policy should be signed as co applicant. Guarantor with CV ownership of same asset segment is required Guarantor NA for exposure above Rs.15 Lacs Funding No of Units 1 1 1 Max Tenor / Moratorium 60 Months with 30 Days Moratorium 75% for UCV 80% for UCV 75% for UCV 75% for New CV FBT & 70% for New CV FBT LTV 75% for New CV FBT & 90% for Chassis 85%% for Chassis & 85% for Chassis 70% for UCE, 80% for 70% for UCE, 80% for New CE 65% for UCE, 75% for New CE New CE Maximum LTV caping meeting additional Maximum 10%, over and above the LTV offering mentioned above. Upper cap – 90% conditions/LTV deviation Additional LTV Conditions Additional LTV of 5%: One Condition, additional LTV 10% : Two Conditions 1. CIBIL Score 700 and above 2. Property Ownership Proof (Applicable for Captive Profiles) 3. CV/Tractor/CE Ownership minimum 12 months for applicant/co-applicant 4.Average bank balance 2 times the EMI or Average bank credit 2 times the EMI- Last 6 months Additional LTV Conditions 5.Guarantor with property ownership/similar vehicle ownership (Not applicable for FTU/FTB Customers more than 15 Lacs) 6.Guarantor with 12 months ETR/ATR track on CV/CE loan for 30% of the proposed loan amount. 7. Income above 2.5 Lacs for Captive Customer LTV increased due to MI or Cross sell funding should not be consider as deviation LTV reduction From Eligible LTV CAT A - Nil, CAT B - 5% , Grade C - 10% (Applicable for CE ) Eligible states for CE – Tamil Nadu, Andhra Pradesh & Telangana, Karnataka, Maharashtra, , Notes Gujarat , Rajasthan , Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Orrisa & Jharkhand. Any addition of the states for CE funding would be approved by CRO on Reco by CBO and CCO. Funding on M&HCV Buses not allowed for FTU&FTB. Where ever route permit is available from the govt transport agency/authority, funding on buses including HCV buses can be extended for FTU/FTB profiles. ICV & LCV Buses can be funded for FTU&FTB. 24 VEHICLE LOANS- CV/CE/FE/CAR  Funding Norms for Retail/Strategic transporters/hirers – CV/CE Criteria Retail 1-5 Retail 6-9 Strategic Business Experience 2 Years 3 Years 3 Years Residence Stability 2 Years (Not applicable in case of applicant /co-applicant staying in own house) Bank Statement 6 Months Banking > = 650 for Individual Applicant/Co-applicant and New to Credit i.e CIBIL For Non-Individuals, corporate CIBIL to be taken. Co Applicant One of the Family Member as per Policy should be signed as co applicant Funding No of Units Multiple Max Tenor / Moratorium 60 Months with 30 Days Moratorium Minimum 6 Vehicles Minimum 1 Vehicle (Min 2 Vehicles >10 Vehicles (Min of 5 Vehicles Fleet (for Period of 12 should be Owned should be Owned > 2Yrs Months >2Yrs) Repayment Minimum 12 Months & 40% of the Post funding CV/CE exposure Fleet addition (Excluding Not > 50% in Last 12 Months Proposed Vehicle) FFR +Deemed Free Up to 2 vehicle – NA (Including Proposed 3 – 5 Vehicle – 1 Free Minimum 20% Vehicle) vehicle 80% for UCV 85% for UCV 90% for UCV, 90% for New CV FBT 85% for New CV FBT 85% for New CV FBT LTV 100% for New Chassis 100% for Chassis 100% for Chassis 80% for UCE, 85% for 85% for CE Assets 90% for CE Assets (New and Used) New CE (New and Used) 40% St. customer availed body funding Body funding 50% 60% in past (3 veh and above) Maximum LTV caping meeting additional Maximum 10% from the LTV mentioned above (Maximum not to cross 95% on FBT) conditions/LTV deviation Additional LTV of 5% : One Condition, Additional LTV of 5%: One Condition Additional LTV Conditions additional LTV 10% : Two Conditions (Only for UCE) 1. CIBIL Score 700 and above 1. FFR is Minimum of 30% 2 Property Ownership Proof in applicant/co- applicant name 2. Valid Contract Copies from 3. FFR is Minimum of 30% reputed Companies/Govts - Payment Additional LTV Conditions 4. Valid Contract Copies from reputed validation through TDS/GST/Banking Companies/Govts – Payment validation through TDS/GST/Banking 5.Guarantor with 12 months ETR/ATR track on CV/CE loan for 30% of the proposed loan amount. 25 VEHICLE LOANS- CV/CE/FE/CAR  Criteria Retail 1-5 Retail 6-9 Strategic 6. Banking - ABB required with >=2 times of EMI and ABC >=3 times of EMI LTV increased due to MI or Cross sell funding should not be consider as deviation LTV reduction From Eligible LTV CAT A - Nil, CAT B - 5%, Grade C - 10% (Applicable for CE ) For Exposure above Rs.300 Lacs below mention financial norms are applicable 1. 2 yrs audited financials Notes 2. DSCR >= 1.25 times 3. Debt equity ratio 4:1 4. Net worth & Cash Profit should be positive 5.Debtor turnover days less than 90 days For Retail 1-5,6-10 and Strategic Profiles, similar kind of vehicle ownership experience is required. Upgradation from SCV to LCV, LCV to ICV/M&HCV is acceptable. Eligible states for CE – Tamil Nadu, Andhra Pradesh & Telangana, Karnataka, Maharashtra, , Gujarat , Rajasthan , Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Orrisa & Jharkhand. Eligible states for CE Any addition of the states for CE funding would be approved by CRO on Reco by CBO and CCO. DEEMED FREE 75% of tenor serviced. 26 VEHICLE LOANS- CV/CE/FE/CAR  Funding Norms for SCV / Pickup Customer Category All Customer Categories (Captive/Non-Captive) Business 1 Year business proof or Property Ownership. Experience/Property Ownership 2 Years (Not applicable in case of applicant /co-applicant staying in own house cum Residence Stability Parental House) Co Applicant Co applicant is required, should be a family member Minimum CIBIL Score 650 & NTC Max 48 Months Tenor for used SCV and 60 months for NEW SCV and Used M&M Pickups. Tenor/Moratorium Moratorium 30 days Used New LTV M&M Pickups/Bolero Camper/ Tata Ace /AL Dost/ Maruti Carry 85% 90% Others 75% 80% Additional LTV of 5%: One Condition, additional LTV 10%: Two Conditions Additional LTV Conditions Maximum LTV restricted to 95%. 1.CIBIL Score 700 and above 2. CV/CAR/Tractor/CE Ownership for more than 12 months Additional LTV 3.Experiance proof and property ownership proof (Both are required) Conditions 4. Any EMI based SL/USL loan >=1L with repayment for 12 months as per CIBIL strings (Applicant/Co- (Closed Loans in Last 12 months can be considered) applicant) 5.Average bank balance 1 times the EMI or Average bank credit 2 times the EMI- Last 6 months 6. Guarantor with property ownership/CV ownership/ 12 months ETR/ATR track on any SL/USL loan. LMV DL is also acceptable as business experience poof. One Time Tax is applicable as per RTO regulation which is including funding with eligible Notes LTV. Any LTV increased due to MI or Cross sell funding should not be consider as deviation 27 VEHICLE LOANS- CV/CE/FE/CAR  Funding Norms for School/College Bus Criteria School/College Bus funding Business Experience 2 Years Bank Statement 6 Months Banking is required. > = 650 for Individual Applicant/Co-applicant/Guarantor. NTC (0, -1, less than 200) is CIBIL acceptable. For Non-Individuals, corporate CIBIL to be taken. Co In case, applicant is School/College, trust/society should be taken as co-applicant. Applicant/Guarantor Managing trustee should be the guarantor. Max Tenor / 60 Months, (0 / 30/60 days) Moratorium Repayment Track 40% of the Post funding CV/CE exposure LTV LTV -85 % and for Composite assets combined LTV is 85%. LTV on Body Funding 50% for school/college with student strength above 500. Any one of the conditions met will get 5% additional LTV. Upper Cap is 90%. Banking - ABB required with >=1 time of EMI and ABC >=2 time of EMI 12 months of Repayment track (SL/USL) of 40% of proposed loan amount Additional LTV Institution is running in own premises owned by Trust Conditions /Society/Trustee/President (Proof of property ownership to be document and should be part of the deal) Audited financials with Fees recorded of more than 40 Lacs Affiliation / recognition certification required for the school from state / central board Notes Any LTV increased due to MI or Cross sell funding should not be consider as deviation 28 VEHICLE LOANS- CV/CE/FE/CAR  Funding Norms for Car for loan amount Up to 7 lacs Customer Category Self-employed/Salaried/T Board Business Experience 2 Year business proof Residence Stability 2 Years (Not applicable in case of applicant /co-applicant staying in own house cum Parental House) Co Applicant Co applicant is required, should be a family member Banking 6 Months Minimum CIBIL Score 650 & NTC Max Tenor/Moratorium 60 Months for Personal Usage and 48 Months for T Board Maximum Loan amount 7 Lacs Asset age at End of 10 years for Delhi NCR and 15 years for Rest of the states tenure for Used vehicles For Used Cars Maximum Up to 4 Ownership transfer allowed (Including Proposed transfer) Category Personal Usage T Board (Taxi) CAT A 85% 75% LTV CAT B 80% 70% CAT C 70% NA Additional LTV Additional LTV of 5%: One Condition, additional LTV 10%: Two Conditions and for additional LTV of Conditions 15%: Three conditions. (Maximum LTV to be restricted to 90% for personal and 85% for T Board) 1.CIBIL Score 700 and above 2. Income beyond 2.5 Lacs 3.property ownership proof Additional LTV 4. Any EMI based SL/USL loan >=2 L with repayment for 12 months as per CIBIL strings (Closed Loans Conditions in Last 12 months can be considered) (Applicant/Co-applicant) 5.Average bank balance 1 times the EMI or Average bank credit 2 times the EMI- Last 6 months 6. Guarantor with property ownership/CV ownership/ 12 months ETR/ATR track on any SL/USL loan. FOIR Should not cross 60% for Salaried T Board need to be captured in Separate Promo code One Time Tax is applicable as per RTO regulation which is including funding with eligible LTV. Any LTV increased due to MI or Cross sell funding should not be consider as deviation Discontinued Manufacturer will Not be funded Asset Not in approved Model -Base LTV to be reduced by 10% Notes Maximum 1 unit to be funded in above Note, for Auto fleet Operators for greater than 1 unit to be appraised on CV/CE note Like Retail 1-5, Retail 6 to 10 and Strategic Extending funding on CAR without business experience proof. This is can be allowed based on field visit report by INDOSTAR Employee confirming the existing of the business and business activities. Base LTV for these cases would be reduced by 5% from the LTV mentioned in the policy. For T Board Car Non Badge LMV DL can be considered as Business Experience Proof 29 VEHICLE LOANS- CV/CE/FE/CAR  Funding Norms for Car for Loan amount above 7 Lacs Customer Category Self-employed/Salaried/T Board Business Experience 2 Year business proof Property Ownership Mandatory Co Applicant Co applicant is required, should be a family member Income of 4 lacs + for last 2 years ABB more than 2 times or Average bank credit 3 times the Proposed EMI- Income Last 6 months (Any one condition to met) Repayment being More than 40% of Proposed Loan with seasoning of more than 12 months -Repayment track should be ETR /ATR Banking 6 Months Minimum CIBIL Score 650 & above (for NTC customer, Co-app should be meeting Cibil Score Norms) Max Tenor/Moratorium 48 Months Tenor for used and 60 months for NEW Car Moratorium 0/30 days 10 years for Delhi NCR and 15 years for Rest of the states Asset age at End of tenure for For Used Cars Maximum Up to 4 Ownership transfer allowed (Including Proposed Used vehicles transfer) Category Personal T Usage Board (Taxi) LTV CAT A 85% 75% CAT B 80% 70% CAT C 70% NA Additional LTV of 5%: One Condition, additional LTV 10%: Two Conditions and for Additional LTV Conditions additional LTV of 15%: Three conditions. (Maximum LTV to be restricted to 90% for personal and 85% for T Board) 1.CIBIL Score 700 and above Additional LTV Conditions 2.. Any 2 condition being met as mentioned in Income norms (Applicant/Co-applicant) 3 Guarantor with Repayment Track of more than 40% of proposed loan with minimum seasoning of 12 months ETR/ATR track on any SL/USL loan. FOIR Should not cross 60% for Salaried T Board need to be captured in Separate Promo code One Time Tax is applicable as per RTO regulation which is including funding with eligible LTV. Any LTV increased due to MI or Cross sell funding should not be consider as deviation Discontinued Manufacturer will Not be funded Asset not in approved model ,LTV to be reduced by 10% Maximum 1 unit to be funded in above Note, for Auto fleet Operators for Note greater than 1 unit to be appraised on CV/CE note Like Retail 1-5, Retail 6 to 10 and Strategic Extending funding on CAR without business experience proof. This can be allowed based on field visit report by INDOSTAR Employee confirming the existing of the business and business activities. Base LTV for these cases would be reduced by 5% from the LTVs mentioned in the policy. For T Board Car Non Badge LMV DL can be considered as Business Experience Proof 30 VEHICLE LOANS- CV/CE/FE/CAR  Funding Norms for Farm Equipment Non-Captive Criteria Agri Based Captive (Commercial Usage) Business Experience 2 Acre Agri land NA 2 Years Residence Stability 2 Years (Not applicable in case of applicant /co-applicant staying in own house) 6 Months Banking/New 6 Months Banking/New Bank Statement 6 Months Banking Bank account Bank account > = 650 for Individual Applicant/Co-applicant. NTC (0, -1, less than 200) is acceptable. CIBIL For Non-Individuals, corporate CIBIL to be taken. Co Applicant One of the Family Member as per Policy New Tractor -10 Lacs, Used Tractor -6 Lacs Exposure Cap per Unit New Harvester -20 Lacs and Used Harvester -15 lacs Funding No of Units 1 1 1 Asset age 15 Years at the EOT for Used Vehicle Max Tenor 60 Months for New and 48 Months for Used asset LTV 80% 75% 80% Additional LTV of 5%: One Condition, additional LTV 10%: Two Conditions (Upper cap Additional LTV Conditions of 90%) 1. >= 2 Acres 2. Own FE Vehicle /CV 3. CIBIL Score > 700 4. Valid DL 5.Any SL/USL Emi based loans >= 2 Lac with repayment for 12 months as per CIBIL Additional LTV Conditions strings (Consider ETR/ATR only) 6.Average bank balance 1 times the EMI or Average bank credit 1 times the EMI 7 Guarantor with property ownership/CV ownership/ 12 months ETR/ATR track on any SL/USL loan. 8. Guarantor with property ownership/CV ownership/ 12 months ETR/ATR track on any SL/USL loan. Any LTV increased due to MI or Cross sell funding should not be consider as deviation LTV reduction From Eligible LTV CAT A - Nil, CAT B - 5%, CAT C - 10% New Vehicle Pre delivered tractors, 1. acceptable limit is 60 days (Invoice Date) or 200 Hrs. of Usage is allowed. 2. Inspection by ICFL Employee/Empanel Valuator. Agri Land ownership should be there in name of applicant /co applicant Notes Eligible states for Tractor funding – Madhya Pradesh, Chhattisgarh, Gujarat, Maharashtra, Punjab, Rajasthan, Andhra Pradesh &Telangana, Uttar Pradesh, Haryana & Assam For Harvester -Tamil Nadu Any addition of the states for FE funding would be approved by CRO on Recommended by CBO and CCO. 31 VEHICLE LOANS- CV/CE/FE/CAR OTC Policy Used Vehicle Funding: Used Vehicle Funding also involves finance for Repurchase/Refinance of second hand/used vehicles. This would involve change of ownership of the asset from the buyer to the seller and also noting of ICFL Hypothecation at the RTO and the Registration Certificate and Insurance Policy of the asset. Payment under the circumstances would be released post name transfer to the applicant and due noting of ICFL Hypothecation in the RC and Insurance and confirmation by procurement of B Extract/FOP from the concerned RTO. These documents may not always be available at the time of booking and hence would be treated as OTC deferred documents and disbursement payment will be kept on hold till the submission of said documents Deferral Matrix for Hypothecation Related Documents Approving Authority Stage of Document Maximum Ageing collection being from the month Transaction Type Type of Documents ACH DCH/RCH CCO/ZCH approved in the said of booking deferral RC Yes Yes Yes OTC 90 Used Vehicles Insurance Policy Yes Yes Yes OTC 90 FOP* Yes Yes Yes OTC 90 *If FOP is available RC is not mandatory_ Vahaan FOP/ Scan / Soft copy / on mail from official mail of vendor would be acceptable if extracted from our empaneled vendor or obtained by our FTE (Fulltime employee) with FCU screen. Note 1: Trigger for escalation of OTC Pending New/Used Vehicle funding: At any point of time for each Branch there should not be deferral pending for more than 20% of total cases booked over last T*-2 Month** This would be subject to nil deferral pending for T*-5 Month In case any of the above is breached based on the MIS being published further deferral bookings shall stop for that Branch with immediate effect. All the OTC transactions need to closely monitored and maintained by Credit team. *T- Transaction month The above request will be routed through ABH/RBH Will be sent to branch credit 32 VEHICLE LOANS- CV/CE/FE/CAR Credit approval authority matrix Credit approval BCM ACM DCH/RCM ZCM NCH CCO Authorization