Pre Promotion Training 17 May 2015

1. The maximum exit age of the borrower to be eligible for IB Home Loan can normally be upto  a. 50 years  b. 60 years  c. 55 years  d. 70 years Ans : b) Home Loan

2. One of the following is not eligibility criteria for availing NRI Home loan a. NRIs gainfully employed with a residual contract period / service of at least 3 more years to run. b. Age at entry level between 18 – 50 years & age at exit - Max60 years c. A minimum monthly income of US$ 250 or its equivalent is required to avail a maximum amount of Rs.3.50 lakhs loan d. Age at entry level between 21– 50 years & age at exit - Max60 years Ans : b Home Loan

3. Minimum margin for purchase of Plot loan is : a % on land cost b. 33% on land cost c. 25% on land cost d. 50% on land cost  Ans : c) Plot Loan

4. Which of the following is not true in respect of Home loan to residents:  a. 60% of future rental income, if any from the house property to be purchased / constructed shall also be included  b. Take home Income should be more than 40% of gross monthly income after deduction of EMII for the proposed loan  c. Minimum take home pay of 40% need not be taken into account, if the take home pay is more than Rs 20000/- after the proposed EMI for the home loan  d. 36 times of Net Monthly Income or 60 tiems of gross Monthly Income (including income of spouse) whichever is lower Ans d) d. 36 times of Net Monthly Income or 60 tiems of gross Monthly Income (including income of spouse) whichever is lower Home Loan

5. The Normal Repayment period of IB Home Loan to Individuals is  a. Maximum 25 years for purchase/construction of new house/flat  b. Maximum 240 months for purchase/construction of new house/flat  c. Maximum of 15 years only  d. Maimum 10 years. Ans : b Home Loan

6. The Margin to be brought by the borrower for a loan of > Rs.20 lakhs and upto Rs 75 lakhs, under IB Home Loan to Individuals for new construction is  a. 10%  b %  c. 25 %  d. 20 %  Ans : d) Home Loan

7. The maximum repayment period normally allowed for a NRI for purchase / construction of a house or flat under NRI Home loan scheme is  a. 25 years  b. 10 years  c. 15 years  d. 20 years  c) 15 Years Home Loan

8. The maximum amount that can be sanctioned for loan for purchase of house site by NRI in a metro area is  a. Rs.300 lakhs  b. Rs.50 lakhs  c. Rs.100 lakhs  d. Rs.10 lakhs  A) Rs 300 lakhs Plot Loan

9. In respect of IB Home Loan to Individuals, Flexi E M I is permissible for repayments of  a. 15 years and above  b. 5 years and above  c. 10 years and above  d. for all loans  c) 10 years and above Home Loan

10.Minimum loan under home loan plus is  a. Rs 1 lakhs  b. Rs 10 lakhs  c. Rs 5 lakhs  d. Rs 25 lakhs  Ans : a) Rs 1 lakhs Home Loan

11. The quantum of loan that can be given under IB Home Improve is  a. 30 times of Net Monthly Income  b. maximum of Rs.5 lakhs  c. a & b above  d. 30 times of net monthly income subject to a maximum of Rs.10 lakhs  Ans : c) a&b above Home Loan

12. Maximum loan under home loan plus is  a. Rs 10 lakhs  b. Rs 1 lakhs  c. Rs 5 lakhs  d. Rs 25 lakhs  Ans : a) Rs 10 lakhs Home Loan +

13.Eligibility criteria for home loan plus is  a. Satisfactory repayment of 48 EMIs  b. Satisfactory repayment of 36 EMIs  c. Satisfactory repayment of 60 EMIs  d. Satisfactory repayment of 72 EMIs  Ans: b) Satisfactory repayment of 36 EMIs Home Loan +

14. Loan to value (LTV) for IB Home loan upto 20 lakhs is  a.80%  b.90%  c.10%  d.20%  Ans : b) 90% Home Loan

15. Margin for Home loan above Rs 75 laksh  a.40%  b.50%  c.33%  d.25%  Ans : d) 25% Home Loan

16. Pre- release audit limit for Home Loan  a. 25 lakhs & above  b. 10 lakhs & above  c. 100 lakhs & above  d. 50 lakhs & above  Ans : d) 50 Lakhs Home Loan

17. Minimum monthly income for NRI home loan of above Rs.5 lakhs (Equivalent to US Dollar)  a.250  b.500  c.900  d.1000  Ans : b) USD 500 Home Loan

18. Which of the following is not true in respect of home loan repayment period:- a)Maximum repayment period is 20 years for HL residedent (Including holiday period) b)For take over accounts, the repayment period can be extended beyond the period sanctioned by the original lender subject to a maximum of 20 years including the period already run in the existing institution c)Chief Managers and above may extend repayment period upto 25 years (including holidayperiod of 18 months, if applicable) on selective basis for purchase / construction of new house /flat d)Maximum repayment period is 20 years for HL residednt (Excluding holiday period). e)Ans : d) Home Loan

19. Margin for repair or renovation under Home loan above Rs.20 lakhs  a.10%  b.20%  c.30%  d.40%  Ans : 30% Home Loan

20. Which of the following is true in respect of home loan borrower: a.NRIs can opt for Fixed Rate of interest only b.Non Residents can opt for either Fixed or Floating rate of interest c.Resident can opt for Floating rate only d.Non residents can opt for floating rate of interest only  Ans : d) Non residents can opt for floating rate of interest only Home Loan

21. Conversion of fixed rate to variable rate can be allowed under Home loan after____years from sanction  a.3years  b.5years  c.7years  d. No limit Ans : a) 3 years Home Loan

22. What is the fee for switching over from fixed rate to floating rate of interest :-  a) If switch over after 3 years no fee  b) If switch over after 5 years no fee  c) If switch over after 3 year 1% of balance o/s  d) both a & b above  Ans : d) both a&b Home Loan

23. Max repayment period for NRI Home loan is  a.20years  b.15years excluding holiday  c.15years including holiday  d.10 years  Ans : c) 15 years including holiday period Home Loan

24. Margin for plot loan (Resident) is  a. 35% of land cost  b. 33% of land cost  c. 15% of land cost  d. 25% of land cost  Ans : 25% of land cost Home Loan

25. Margin for Home Improve loan is  a.10% of cost of articles  b.15% of cost of articles  c.20% of cost of articles  d.25% of cost of article  Ans : b)15% of cost of articles Home Loan

26. Margin for Home Improve loan is  a.10% of cost of articles  b.15% of cost of articles  c.20% of cost of articles  d.25% of cost of article  Ans : b)15% of cost of articles Home Loan

27. Interest rate concession of 0.50% from applicable card rate is not available under IB combo loan package in respect of the following loan  a) IB Vehicle Loan  B) IB Bhavishya Prakash  C) IB Pension Loan  D) IB Home loan Improve  Ans :d) IB Home loan Improve Home Loan

28. Concession in applicable processing fee of 0.50% is not available under IB combo loan package in respect of the following loan  a) IB Vehicle Loan  B) Salary Loan  C) IB Home loan Improve  d) None of the above  Ans :d) none of the above Home Loan

29. Max repayment period for IB Home loan plus is  a. 5 years  b.10 years  c.15 years  d.20 years  Ans : b) 10 years Home Loan

30. What is not true about IB Vehicle Loan  a. Loan can be sanctioned to Pensioners  b. Loan can be sanctioned NRI  c. Loan can be sanctioned to our staff  d. Loan cannot be sanctioned employees of other bank  Ans : b) 15% IB Vehicle Loan

31. The minimum margin prescribed under IB Vehicle Loan for purchase of new vehicle Is  a. 10%  b. 15%  c. 20%  d. 25%  Ans : b) 15% IB Vehicle Loan

32. Maximum loan that can be given under IBVL for 2 wheeler subject to per borrower ceiling and credit power is  a.Rs.75000/-  b.Rs.50000/-  c.Rs.10 lakhs  d.Rs.1 lakhs  Ans : c) Rs 10 lakhs IB Vehicle Loan

33. Maximum loan that can be given under IBVL for 4 wheeler subject to per borrower ceiling and credit power is  a.Rs.10 lakhs  b.Rs.15 lakhs  c.Rs.100 lakhs  d.Rs.200 lakhs  Ans : d) Rs 200 lakhs IB Vehicle Loan

34. Minimum gross monthly income for 4 wheeler in India is  a.Rs.20000/-  b.Rs.10000/-  c. Rs.40000/-  d. No limit  Ans : a) IB Vehicle Loan

35. Minimum monthly income for purchase of 4 wheeler (for use in India by family) to NRI is equivalent of  a.Rs.20000/-  b.Rs.40000/-  c. Rs.50000/-  d. Rs  Ans : Rs 40000/- IB Vehicle Loan

36. Margin for used vehicle 4 wheeler is  a.15%  b.20%  c.40%  d.25%  Ans : c) 40% IB Vehicle Loan

37. Maximum repayment for non-salaried borrower for IBVL is  a. 84 months  b. 60 months  c.36 months  d. No limit  Ans : c) 60 months IB Vehicle Loan

38. The maximum amount of loan that can be given for a bonafide purpose under Ind Mortgage is  a. Rs.0.5 crore  b. Rs.2 crores  c. Rs.5 crores  d. Rs 1 Crore Ans : Rs 2.00 crore Ind Mortgage

39. One of the following is not the eligibility criteria under salaried class for availing the loan under Ind Mortgage  a. Permanent Employees of Central / State Govt./Quasi Government Bodies/Public Limited companies/ Reputed Private Limited companies with clear record of paying timely salaries  b. Completed minimum 3 years of service  c. Should have regular minimum monthly income of Rs.25, 000/- & take home pay should be more than 40% of gross income after deduction of EMI for the proposed loan  d. Incase of Self employed / Professionals / Businessmen, * based on their average income earned in the last 3 years * Minimum net annual income has to be Rs.1,50,000/- after deduction of proposed EMI. Ans : c. Should have regular minimum monthly income of Rs.25, 000/- & take home pay should be more than 40% of gross income after deduction of EMI for the proposed loan Ind Mortgage

40. What is the Maximum repayment period under Ind Mortage  84 months excluding holiday period  60 months including holiday period  84 months including holiday period  84months without holiday period  Ans : d) 84months without holiday period Ind Mortgage

41. What is not true in respect of Rent Encash  Quantum of loan is Upto 84 months rent or rental value for the unexpired certain period of lease (Rent receivables) whichever is less  Minimum Rs. 1 lakh. Maximum: Rs.200 lakhs  Margin is 40% on Net Rent Receivables (Rent Receivables Net of Advance already received from the tenant + TDS + Property Tax + any other statutory liability) with a maximum of 60% of Market Value of Property  Maximum repayment period is 84 months with holiday period of 6 months Ans : d) Maximum repayment period is 84 months with holiday period of 6 months Rent Encash

42. What is not true about Indi reverse Mortgage a)Senior Citizens above 60 years, including retired staff of our Bank b)Married couples will be eligible as joint borrowers for financial assistance provided one of them is above 60 years of age c)Property is self acquired residential property and self-occupied d)The residual life of the property should be more than 10 years Ans : The residual life of the property should be more than 10 years (20 Years) Ind Reverse Mortgage

43. What is margin on Reverse Mortage a)61% on the realizable value of property b)31% on the realizable value of property c)33% on the realizable value of property d)25% on the realizable value of property Ans : a) 61% on the realizable value of property Ind Reverse Mortgage

44. What is not true about Ind Reverse Mortgage a)Realizable value of the property is calculated at 10% less than the Market Value assessed by Bank’s Panel Engineer. b)Maximum loan amount: Rs.40 lakh c)Lump sum up to 20% of the eligible loan amount d)Maximum eligible lumpsum is restricted to Rs.5 lakhs Ans : d) Maximum eligible lumpsum is restricted to Rs.5 lakhs (Rs 15 lakh)  Ind Reverse Mortgage

46.What is the maximum pension loan for the pensioners upto the age 70 years a)Rs 1 lakhs or 10 times of pension whichever is lower b)Rs 3.00 lakhs or 10 times of pension whichever is lower c)Rs 0.5 lakh or 10 times of pension whichever is lower d)Rs 1.5 lakh or 10 times of pension whichever is lower Ans : d) Rs 3.00 lakhs or 10 times of pension whichever is lower Pension Loan

46.What is the maximum pension loan for the pensioners above the age 70 years & upto 80 years a)Rs 1 lakhs or 10 times of pension whichever is lower b)Rs 3.00 lakhs or 10 times of pension whichever is lower c)Rs 0.5 lakh or 10 times of pension whichever is lower d)Rs 1.5 lakh or 10 times of pension whichever is lower Ans : d) Rs 1.50 lakhs or 10 times of pension whichever is lower Pension Loan

46.What is the maximum pension loan to family pensioners a)Rs 1 lakhs or 10 times of pension whichever is lower b)Rs 3.00 lakhs or 10 times of pension whichever is lower c)Rs 0.5 lakh or 10 times of pension whichever is lower d)Rs 1.5 lakh or 10 times of pension whichever is lower Ans : d) Rs 1.00 lakhs or 10 times of pension whichever is lower Pension Loan

45. Pre-release audit to be done for home loan a)Rs 50 lakhs b)Rs 10 lakhs c)Rs 25 lakhs d)Rs 100 lakhs d) Rs 50 lakhs Pre Release Audit

46.Pre-release audit to be done for structured loan products other than home loan a)Rs 50 lakhs b)Rs 10 lakhs c)Rs 25 lakhs d)Rs 100 lakhs d) Rs 25 lakhs Pre Release Audit

47. Pre-release audit to be done for home loan & Plot loan a)Rs 50 lakhs b)Rs 10 lakhs c)Rs 25 lakhs d)Rs 100 lakhs d) Rs 50 lakhs Pre Release Audit

48.In case of home loan and plot, engineer valuation to be obtained from 2 panel engineers a)Limit exceeds Rs 50 lakhs b)Property value exceeds Rs 50 lakhs c)Limit exceeds Rs 100 lakhs d)Property Value exceeds Rs 100 lakhs Valuation

49. In case of SLP other than home loan and plot, engineer valuation to be obtained from 2 panel engineers a)Limit exceeds Rs 5 Crore b)Property value exceeds Rs 50 lakhs c)Limit exceeds Rs 100 lakhs d)Property Value exceeds Rs 100 lakhs e)Ans : C) Property Value exceeds Rs 100 lakhs Valuation

50.Legal audit to be done for limits secured by mortgage of property a)50 lakhs b)100 lakhs c)10 lakhs d)25 lakhs e)Rs 100 lakhs Legal Audit

51. Which of the following is true  CIBIL report to be verified, if the home loan amount < Rs 10 lakhs  ESPERIAN report to be verified, if the home loan amount > 10 lakhs  CIBIL report is to be verified, if the home loan amount > Rs 10 lakhs  Both b & c  Ans : d) both b&c Credit Reports