1. - By Aditya Gupta Roll no. 857 B.B.A LLB (Hons.) VI Semester

2. 1. To give a brief introduction about the Abhyudaya Cooperative Bank Ltd. 2. To identify the different types of long term loans policies of Abhyudaya Cooperative Bank Ltd. 3. To analyse and evalute the long term policies of Abhyudaya Cooperative Bank Ltd.

3. The Beginning  The Bank was started by a group of social workers and labour movement activists, 1964, with a small share capital of Rs. 5,000.  In a short period of time Abhyudaya Co-op. Credit Society got converted into an Urban Co-op. Bank. Finally in June 1965, Abhyudaya Co-op. Bank Ltd. was established with the motto of "Prosperity through Co- operation".

4.  As on 31st March 2013, the bank has 1.51 lakh members and more than 16.66 lakh depositors.  Bank has achieved substantial growth in all perspectives reflecting an overall growth of 20.64% in business mix & total business mix of the bank has reached over Rs. 13145 Crore.  As on 31st March 2013, Bank’s Deposits have reached upto Rs. 8036.40 Crore with rise of 23.27% while Advances have reached upto Rs. 5108.88Crore.  Paid up Capital and Reserves have amounted to Rs. 970.08 Crore and Investments are to the tune of Rs. 3428.00 Crore.  For the F.Y. 2012-13, the Net Profit of the Bank after tax/provision stood at Rs. 91.22 Crore.

5. DEFINITION OF LOAN The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges. A loan may be for a specific, one-time amount or can be available as open-ended credit up to a specified ceiling amount. TYPES OF LOANS 1. Secured Loans: A secured loan is a loan in which the borrower pledges some asset as a collateral. Ex: Housing Loans 2. Unsecured Loans: Unsecured loans are loans that are not secured against the borrower asset.

7. A. RETAIL LOAN POLICY 1. HOUSING LOAN POLICY 2. EDUCATION LOAN POLICY 3. LOAN AGAINST IMMOVABLE PROPERTY POLICY 4. PERSONAL LOAN POLICY B. BUSINESS LOANS 1. BUSINESS TERM LOAN POLICY 2. LOAN AGAINST IMMOVABLE PROPERTY TO BUILDERS AND DEVELOPERS POLICY.(SOD IMP-BUILDERS)

8. Type of PolicyRate of Interest on Loan ( in %) Other Circumstances. Housing Loan11.0015.00(above Rs. 25 lakh) Education Loan13.0014.00 ( above Rs 10 Lakh) Loan Against Property15.00- Personal Loan`14.00 -

9. 1. HOUSING LOAN POLICY PURPOSE  Purchase of Flat (New or Resale)  Construction of House,  Extension to existing Flat / House  Takeover of Housing Loan from other Financial Institutions, etc. MAX. AMOUNT Maximum amount of Rs. 70.00 Lakh. Rate of Interest 1. Loan upto Rs. 25 Lakhs – 11.00% p.a 2. Loan more than Rs. 25 Lakhs – 15.00%

10. 2. EDUCATION LOAN POLICY PURPOSE  Approved courses leading to graduate/post graduate degree and PG diplomas conducted by recognized colleges / universities recognized by UGC / Govt. / AICTE / AIBMS / ICMR etc.  Courses like ICWA, CA, CFA etc.  Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.  Approved courses offered in India by reputed foreign universities. EXPENSES CONSIDERED UNDER THE POLICY  Fee payable to college / school / hostel  Examination / Library / Laboratory fee  Travel expenses / passage money for studies abroad  Insurance premium for student borrower. Rate of Interest 1. For Boys Student : Loan upto Rs. 10.00 Lakh:13.00% Loan above Rs.10.00 Lakh:14.00% 1. For Girls Students : Loan upto Rs.10.00 Lakh :12.50% Loan above Rs.10.00 Lakh:13.50%

11. 3. LOAN AGAINST IMMOVABLE PROPERTY POLICY. PURPOSE The amount can be used for any productive purpose but shall not be used for purposes prohibited by law MAX. AMOUNT (a) Rs. 10.00 Lakh:-To individuals, self employed persons & professionals. (b) (b) Rs. 25.00 Lakh:-To business persons. ELIGIBILITY 50% of market value of the property. TENURE 36 months, subject to review every year. RATE OF INTEREST – 15.00% p.a SERVICE CHARGES 0.70% of sanctioned amount

12. 4. PERSONAL LOAN POLICY PURPOSE  Purchase of Consumer durables and furniture/ fixture/ computers  Repairs / renovation of flat / house  Purchase of 2 wheelers  Purchase of gold ornaments  Marriage & other religious ceremonies  Domestic / Foreign tours & travels  Repayment of existing debt  For any purpose which is acceptable to bank. ELIGIBLITY a)Permanent Salaried employees b)For Businessmen / Self-Employed / Professional. REPAYMENT Upto 60 months. RATE OF INTEREST 14.00 % p.a

13. 1. BUSINESS TERM LOAN POLICY Abhyudaya Bank provides term loan facility for setting up of new and additional business unit, acquisition of fixed assets like factory shed, industrial gala, Plant & Machinery, equipments, furniture and fixture etc, up-gradation of existing unit, and to meet short term as well as long term funding requirements. KEY FEATURES OF THE POLICY  75% of the project cost,  Maximum Repayment period is 84 EMI’s.  Proposal also consider on future prospects of business & its techno-financial viability.  Help to improve your project by our Industrial finance team.  Collateral security required as per Banks prescribed norms. RATE OF INTEREST a) Priority Sector – 15.00 % p.a b) Non Priority Sector - 14.00 % p.a DOCUMENTS REQUIRED  Brief history and profile of Company and its promoters  Bank Statements for last 12 months of all existing loan /OD accounts  Audited Financials for last three financial years.

14. Type of PolicyRate of Interest on Loan ( in %) Other Circumstances. Business term loan policy 14.0015.00(Non Priority Sector) Working Capital Finance Policy 14.0015.00(Non Priority Sector) Loan against Immovable property to builders and developers policy. 17.00-

15. 2. SECURED OVERDRAFT AGAINST IMMOVABLE PROPERTY TO BUILDERS AND DEVELOPERS POLICY.(SOD IMP-BUILDERS) PURPOSE The amount should be used for expenses of the project, like salary, wages, electricity charges, material etc. Amount Shall not be used for purchase of land. MAX. AMT – Rs. 3 Crore ELIGIBILITY – 50% of market value of the property OR Eligibility as per Banks prescribed norms. RATE OF INTEREST – 17.00 % p.a TENURE - 36 months, subject to review every year. SURETIES Two sureties of good means. SECURITY Mortgage & Insurance of immovable properties other than Project Land & Building.

16. 3. WORKING CAPITAL FINANCE POLICY  PURPOSE To provides business,the cash it needs to keep growing until you can cover all operating expenses out of revenue. Helps to meet everyday operational fund requirements & immediate business obligations.  RATE OF INTEREST a) Priority Sector – 15.00 % p.a b) Non Priority Sector - 14.00 % p.a KEY POINTS Assessment on easy terms and special concession in interest rate for SSI units and SME sector advances.  Adequate Drawing power to be maintained.  Overdraft facility is subjected to yearly renewal/ review.  Priority sector advances are encouraged.  Eligibility calculated as per Sales Turnover Method, Production/ Processing Cycle Method and Working capital gap method.

17. A COMPARATIVE ANALYSIS: RETAIL AND BUSINESS POLICIES

18.  The loan policies of Abhyudaya Bank can be divided into A) Retail Policies. B) Business Policies.  Abhyudaya Bank offers a variety of loan policies under both, Retail and Business policies.  The Abhyudaya Bank charges a higher rate of Interest on Loans given under Business Policies than the Retail Policies.

19. THANK YOU ! QUESTIONS PLEASE ?