The
salient features of UCO Two – wheeler
scheme (Non-Priority Sector):
Salaried
Borrower: Employees with minimum service of 1 year against regular vacancy
in the following sectors and drawing salary from UCO Bank branches or
arranging to remit EMIs under irrevocable salary tie-up arrangement.
Eligible
borrowers employed in:
A. reputed public sector;
B. private institutions/organizations (excluding employees
of Private Ltd. Cos., Partnership and Proprietorship units).
c. Pensioners, more particularly Defence
Pensioners, who have served under short service commission / noncommission
category and fulfilling the age and income criterion of Rs.8,000/- p.m. as
prescribed for salaried class, shall be treated as ‘deemed salaried class’ for
the purpose of determining eligibility under this scheme.
Zonal Head shall have the authority, in deserving
cases, to allow loans to salaried-borrowers, with no salary tie-up, up to Rs.
0.60 lacs only, on the strength of PDCs.
Employees on contractual service condition / job
hopping history and / or unstable income shall not be entitled to finance under
the scheme if the loan is not backed by full liquid collateral securities.
Non-salaried Borrower: The following
categories of borrowers, with stable income as per income criteria fixed under
the scheme, shall be eligible for finance:
d. Agriculturists (with minimum 5 acres of irrigated
land in own/joint name/s)
Barring agriculturists, all other non-salaried
class of borrowers shall have to provide minimum 40% liquid collateral
security, in addition to minimum 10% margin.
Acceptable forms of liquid collateral securities
are as per point No. 13 here under.
Salaried Borrower:
21 to 55 years
Non Salaried
Borrower: 21 to 60 years
Salaried
Borrower: Minimum gross salary of Rs.8, 000/- p.m.
Non Salaried
Borrower: Minimum income of Rs.1lac p.a.
as per Income Tax Returns / Assessment Order in the preceding year. OR, Minimum
income of Rs.1.5 lacs p.a. for purchase of feature-rich vehicles. In case of
agriculturists, self declaration of income to the satisfaction of the Sanctioning
Authority is required.
Note: Ø While determining loan eligibility
minimum take-home income of 40% p.m., after taking into account the EMI of the
new loan, should be ensured for both class of borrowers.
Ø For salaried class of borrowers, availability
of 40% take-home pay shall be ascertained in relation to salary of the
applicant for last six months.
Ø Yearly income of the non-salaried borrowers is
to be divided by 12 to arrive at monthly income.
Ø No loan shall be considered in favour of joint
borrowers.
Branches may consider proposals from the
following categories of borrowers only against 100% liquid collateral securities:
Ø Borrowers on contractual employment / frequent
job-hopping history and / or unstable income;
Ø Employees of Pvt. Ltd. Cos., Partnership and Proprietorship
concerns
10% of the total cost on road; margin amount
should be deposited upfront. Cost of vehicle shall include comprehensive
insurance premium and road tax for the first year together with cost of
accessories.
5.
Amount
of loan for purchase of new two-wheeler
Maximum Rs.0.60 lac or 90% of the cost of the new
two-wheeler of well known brand, whichever is less. However, in deserving
cases, Zonal Heads may authorize processing of loans up to Rs.1 lac (Rs. one
lac only) (maximum) for purchase of feature-rich two-wheelers subject to
compliance of the other terms and conditions:
Ø Salary tie-up is a must for loans above Rs.
0.60 lacs in favour of salaried class borrowers;
Ø Minimum income of Rs.1.5 lacs p.a. for
non-salaried class of borrowers.
Financing pre-used Two-wheeler is strictly
prohibited.
Maximum 48 EMIs commencing from one month
after disbursement. In case of salaried borrowers EMIs should be fixed in such
a way that the loan is fully repaid 6 months before the date of retirement.
Salaried
Borrower: ( Compulsory Guarantee:) Personal
guarantee of spouse or nominee of PF/Gratuity of the borrower is compulsory.
a)Compulsory
Guarantee: Personal guarantee of the spouse of the married borrower, or Personal
guarantee of the mother / surviving parent in case of unmarried borrower, or
where spouse guarantee is not available for obvious reasons.
b)
Additional Guarantee: By one more guarantor having income equal to that of
the borrower or having means at least equal to the loan amount.
8. Waiver of Guarantee: i) Guarantee requirements for both
categories of borrowers may be waived if the loan is covered in full by Liquid Collateral Security in the
name of the borrower / third party.
ii)
Additional guarantee stipulation for non-salaried borrowers as per 7(b) may be
waived if 50% of the loan amount is covered by Liquid Collateral Security, in
case of non-salaried borrower.
Eligible
liquid collaterals under UCO Two-wheeler scheme shall be as per serial no. 13
mentioned below.
Salaried
Borrower: For salaried borrowers EMIs are to be recovered and remitted by
employer under salary tie-up arrangement. Standard irrevocable authorization
and undertaking to be obtained from the borrower and employer respectively. In
specially approved accounts (maximum Rs. 0.60 lac) by the Zonal Manager where
recovery of EMI at source is not possible, post dated cheques (PDCs) for all installments
are to be obtained upfront.
Non Salaried
Borrower: 48 post dated cheques (PDCs) are to be obtained before
disbursement of the loan.
1. PDCs should invariably be on the salaried
account of the borrower (may be with other bank) for salaried borrowers.
2. Outstation cheques shall not be accepted as
PDCs.
As already stated, Zonal Head shall have the
authority to:
1. Allow loans to salaried-borrowers, on the
merit of each case, up to Rs. 0.60 lacs, with no salary tie-up arrangement.
2. Provide pre-sanction clearance permitting
processing of proposals up to Rs. 1 lac for purchase of high-value vehicles.
However, accounts backed by 100% liquid
collateral securities shall not be subjected to salary tie-up and / or pre-sanction
clearance by Zonal Manager.
10. Rate Of Interest:
12.25% (fixed)
Concessional Interest Rate shall be allowed by
the Sanctioning Authority only in the following manner:
a) Accounts backed by full liquid collateral
securities: 1% in ROI
b) Accounts backed by 50% liquid collateral
securities: 0.50% in ROI.
11.
Penal Interest: Penal interest @2%
p.a. on the defaulted installment, as per extant guidelines.
12. Primary
Security: Hypothecation of new two-wheeler of reputed brand.
Bank’s charge must be registered with
RTA.
13. Collateral
Security: Lien / Pledge / Assignment
of Instruments, as the case may be,
of liquid collateral security, if any, offered / stipulated by sanctioning authority. Eligible collaterals under UCO Two-wheeler scheme, for all purposes
including waiver of guarantee and
concessional rate of interest, shall be in
the form of:
*Only
Surrender Value of LIC policy shall be taken into account.
14. Processing Charge: 1%; minimum
Rs.500/-.
15. Pre-payment Charge: No pre-payment
charges.
16. Insurance: Comprehensive insurance
with requisite Bank clause, preferably through Bank’s Channel Partner.
Borrowers may be persuaded to have life cover though the same is not mandatory.
17. Disbursement: Before issuing Draft /
Pay Order / Magic Cheque, branch should obtain document/s evidencing placement
of the order by the borrower to the dealer for purchase of the vehicle. The
Draft / Pay Order / Magic Cheque issued towards cost of the vehicle should be
sent directly to the dealer by Registered Post.
18. Lending Powers: Branch Heads of
identified branches, irrespective of their scales:
(a) For
loans up to Rs. 0.60 lac;
(b) For
loans above Rs.0.60 lac and up to Rs.1 lac – presanction clearance from Zonal
Manager – a must.
Proposals
will be processed at respective branches till compatibility with LAPS software
is established
19. Precautionary measures in selection of borrower:
1.
Adequate precaution is to be taken in verification of identity and credit worthiness of the applicant by strict adherence to prescribed KYC norms.
2.
Credit worthiness of the applicant should be properly assessed to determine
borrower’s repaying capacity throughout the entire tenure of the loan.
3.
Original Pass Book / Statement of Account should be checked with reasonable
care and accuracy to assess suitability of the borrower with reference to borrowers
past credit behavior.
4.
Duly attested photo copy of the Pass Book / Statement of Account should be
retained for future record and inspection.
5.
Other credit obligations of the borrower should be ascertained by discreet enquiries
during personal interview with the borrower.
6.
Employer’s undertakings shall be subjected to proper scrutiny to make sure that
employer’s undertaking carries the signature by authorized official of the organization.
7.
Borrowers on contractual income / frequent job hopping history and / or
unstable income shall not be eligible for finance if the exposure is not backed
by full liquid collateral security.
8.
CIBIL data base, where available, should be accessed to assess credit history
of the applicant.
20. End use verification: As already stated, before issuance of
Draft/Pay Order or crediting loan amount to CA/CC account (where applicable),
branch should obtain document/s evidencing placement of the order by the
borrower to the dealer for purchase of the vehicle.
Branches
should arrange for physical inspection of the vehicle and related documents
immediately after sanction of the loan. Records for such verification should be
preserved in the loan file.
Further,
verification from RTA website may be conducted once in a year.
21. Extension of the scheme to the members of
staff: The issue of extension of the scheme for the members of staff of the
Bank is being referred to Head Office, Personnel Services Department for
consideration. Till a concurrence is received from them, no member of staff
will be finance under the scheme.
UCO
Shopper Loan Application Forms are to be used with suitable amendment.
A-36
(Revised), A-26A Guarantor's Statement, Letter of Guarantee in A21A (wherever
required), A38, A39, A4, A58 (as per nature of collateral security offered),
PSVR – I & II, in respect of Borrower and Guarantor/s, if any.
Branches/Offices
are advised to insert additional one row in the ‘Monthly Statement of Retail
Advances’ format for reporting of advances under the scheme.
UCO Two-Wheeler Scheme – Extension of the facility to the members of
staff (Officers&Award staff) of our Bank.
According to Circular No. CHO/PMG/45/2010-11 Dated: 23.02.2011 the
facility of this scheme is extended to the members of staff (Officers &
Award staff) also, with the following terms & conditions, in addition to
what have been prescribed under the scheme:
1. All fulltime confirmed staff members with a minimum of 1 year of
completed service will be eligible. (This condition will apply in lieu of
‘Eligibility Criteria’ prescribed under UCO Two Wheeler Scheme).
2. Eligible member of staff will maintain 40% take home pay after all
deductions including deduction of the instalment of the proposed loan
throughout the currency of the loan. (This condition will apply in lieu of
‘Income Criteria’ prescribed under UCO Two Wheeler Scheme). Further, there
would be no provision for clubbing of income of spouse or children.
3. Two-Wheeler Loan shall have security coverage of lien on P.F.,
Gratuity and all other terminal benefits of the staff member.
4. The staff-member, who has outstanding balance in the staff conveyance
loan a/c for Two-Wheeler, may be considered for loan under UCO Two- Wheeler
Scheme, provided the amount of recovery in respect of the proposed loan as well
as all other loans and statutory deductions leave at least 40% of the salary as
his/her net take home pay.
5. Other terms and conditions including rates of interest as
amended/revised from time to time for general public under UCO Two-Wheeler
scheme will apply to the members of staff also.
Sanctioning Authority
For Officers and Award staff working at branches or at offices under the
jurisdiction of a Zonal Office – respective Zonal Head. However in cases of
VL/EL branches, the Branch Head in SMGS-IV or SMGS-V would be the Sanctioning
Authority for the Officers and Award staff working under him/her.
For Award staff and Officers upto SMGS-IV working in Head Office – Asstt.
General Manager (H R Management)
For officers in SMGS-V working in Head Office & Zonal Heads in
SMGS-V – Dy. General Manager (H R Management)
For Dy. General Managers working in Head Office & Zonal Heads in
TEG-VI – General Manager (H R Management)
For General Managers & Field General Managers – Executive Director/ Chairman
& Managing Director.
