Andromeda Sales and Distribution Pvt.
Ltd
PRODUCTS -
SECURED LOAN UNSECURED LOAN
The Loan which are issued by keeping Security, The Loan which are issued without keeping Security,
Guarantee, Hypothecation, Mortgage, or any Collateral Guarantee, Hypothecation, Mortgage, or any Collateral
Includes - Includes -
• HOME LOAN • PERSONAL LOAN (SALARIED PERSON)
• LOAN AGAINST PROPERTY • UNSECURED BUSINESS LOAN(SELF EMPLOYED)
• COMMERCIAL PURCHASE • PROFESSIONAL LOAN(CA, DOCTOR, ARCHITECT)
• LEASE RENTAL DISCOUNTING • UNSECURED OD FACILITY
• LOAN AGAINST SHARES
• LOAN AGAINST CAR
• WORKING CAPITAL (OD/CC)
BUSINESS ENTITIES -
Proprietorship – Owned, Manage & Control by Single Individual
Partnership Firm – Minimum 2 or More Partners Involved
Private Limited Company – Involved Director In Company
Public Limited Company – Listed on Stock Market
Limited Liability Partnership (Llp) – Partners Liability Limited
Hindu Undivided Company (Huf) – Karta And Co-Parceners
Professionals – CA/CS/Doctor/Architect
BASICS -
1. Age Limit – 25 Years To 60 Years (On Above Age Co-Applicant Required)
2. Residence or Office Should Be Owned
3. Residence Should Be In Building
4. Business Vintage – Minimum 3 Years
5. Minimum Turnover – 60 Lakh Req.
6. CIBIL Score More Than 740+
Decoding Basic Banking Terms
Types of Accounts:
1. Savings Account: Designed for individuals to save money and earn interest.
2. Current Account: Used by businesses for frequent and regular transactions.
3. Fixed Deposit (FD)/Recurring Deposit (RD) Account: Investment accounts where money is locked for a
fixed period for a higher interest rate.
4. Loan Account: Accounts related to borrowing money from the bank.
5. Non-Resident External (NRE) Accounts: For NRIs to park their foreign earnings.
6. Joint Account: An account operated by more than one person.
Key Concepts:
Terms Related to Deposits:
1. Term Deposits: A deposit held at a financial institution that has a fixed term. These are generally short to
medium-term investments.
2. Fixed Deposit (FD): A type of term deposit with higher interest rates than a regular savings account. Safe
and ideal for long-term savings.
3. Recurring Deposit (RD): A term deposit ideal for people with regular income. It allows depositing a fixed
amount every month into their RD account and earns interest at the rate applicable to FDs.
4. Interest Rate: The rate at which interest is paid by a borrower for the use of money that they borrow from
a lender.
5. Annual Percentage Rate (APR): A broader measure of the cost to you of borrowing money, expressed as a
yearly rate.
6. TDS (Tax Deducted at Source): Tax charged by the government on income earned, which is deducted at the
time of making payments such as rent, commission, professional fees, salary, interest etc.
Terms Related to Payments:
1. Beneficiary: The person or entity to which a payment is directed.
2. IFS Code: The Indian Financial System Code is a unique 11-character code assigned to each bank branch in
India, facilitating electronic fund transfers.
3. NEFT (National Electronic Funds Transfer): A system for transferring funds from one bank account to
another across India.
4. RTGS (Real Time Gross Settlement): Used for high-value transactions, providing real-time fund transfers.
5. IMPS (Immediate Payment Service): Offers instant interbank electronic fund transfer.
6. UPI (Unified Payments Interface): A system that powers multiple bank accounts into a single mobile
application.
7. VPA (Virtual Payment Address): A unique identifier that helps UPI to track a person's account.
KEY WORDS –
1. KYC (Know Your Customer): A process for banks to verify the identity of their customers.
2. Nominee: A person designated to receive the account's benefits in case of the account holder's demise.
3. Zero Balance Account: An account where you're not required to maintain a minimum balance.
4. Passbook and Account Statement: Records of all transactions in your account.
5. Collateral: An asset that a borrower offers to a lender as security for a loan. If the loan is not repaid, the
lender has the right to seize the collateral.
6. NPA : - Non Performing Assets It refers to those loans and advances that are in default or in arrears
7. Debtors: - A debtor is a customer who has purchased a good or service and, therefore, owes the payment in
return to the supplier. Customers/suppliers are called debtors/creditors for accounting purposes.
8. Creditors: -A business that provides supplies or services and does not demand immediate payment is a
creditor, as the client owes the business money for services already rendered.
9. Memorandum of Association (MOA): - Memorandum of Association is a document that contains all the
fundamental information with Aims & Objectives which are required for the incorporation of the company.
10. Articles of Association (AOA): - Articles of Association is a document containing all the rules and regulations
that governs the company. .
11. Partnership Deed: - A partnership deed is a written and registered agreement between two or more people,
who want to start a business together. As per the partnership deed, parties involved have agreed to share
profits and losses with each other.
12. CIBIL – A CIBIL report contains detailed information on the credit you have taken, like home loan, car loan,
overdraft facilities, credit card, personal loan, etc. It will mention your repayment history of the money
borrowed over a period of time.
13. Foreclosure - Foreclosure is a legal process where the borrower repays his debt in full before the term of the
loan ends. This helps them in significantly reducing the interest liability and closing down the loan account
well before its tenure.
14. Foreclosure Charges – 2 to 4% Charges on Outstanding Principle Amt +GST
15. Loan Settlement - A one-time loan settlement is when the lender agrees to accept a lesser amount than the
entire amount that is due and agrees to waive off or write off the rest of the amount.
16. Amortization Schedule: A table detailing each periodic payment on a loan, showing the amount of principal
and the amount of interest that comprise each payment until the loan is paid off at the end of its term.
17. Balance Transfer: The process of transferring high-interest debt from one or more credit cards to another
card with a lower interest rate.
18. Repo Rate: This is the rate at which the central bank of a country (like the RBI in India) lends money to
commercial banks. Changes in the repo rate can affect the interest rates of loans and savings
DSA – DIRECT SELLING ASSOCIATION/AGENT
EMI – EQUATED MONTHLY INSTALLMENTS
GST – GOODS & SERVICE TAX
FOIR – FIXED OBLIGATION INCOME RATIO
LTV – LOAN TO VALUE
ECS- ELECTRONIC CLEARING SYSTEM
RTGS – REAL TIME GROSS SETTLEMENTS
NEFT - NATIONAL ELECTRONIC FUNDS TRANSFER
PDC – POST DATED CHEQUES
CPV – CONTACT POINT VERIFICATION
TO - TURNOVER
NP- NET PROFIT
GP – GROSS PROFIT
CC – CASH CREDIT
OD – OVERDRAFT FACILITY
ROI – RATE OF INTEREST
PF – PROCESSING FEES
PD – PERSONAL DISCUSSION
KYC – KNOW YOUR CUSTOMER
NBFC – NON BANKING FINANCIAL COMPANY
BT – BALANCE TRANSFER
HL – HOME LOAN
LAP – LOAN AGAINST PROPERTY
PL – PERSONAL LOAN
UBL – UNSECURED BUSINESS LOAN
PCMP – PROFESSIONAL CREDIT MEDI PLUS (Doctor MBBS +, CA, Architect)
CIBIL – CREDIT INFORMATION BUREAU OF INDIA LIMITED
GST – GOODS AND SERVICE TAX
TYPES OF BANKS -
1. Private Sector Banks - Private Sector Banks refers to the banks whose majority of stake is held by the
Individuals and corporations.
2. Public Sector Banks - Public Sector Banks are the banks whose complete or maximum ownership lies
with the government.
3. Multinational Banks - A foreign bank is one that has its headquarters in a foreign country but
operates in India as a private entity.
4. NBFC’S – Non banking financial companies (NBFCs), also known as nonbank financial institutions (NBFIs),
are financial institutions that offer various banking services but do not have a banking license. Investment
banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds,
and P2P lenders are all examples of NBFCs.
PRIVATE SECTOR BANKS MULTINATIONAL BANKS NBFC’S PUBLIC SECTOR BANKS
KOTAK MAHINDRA BANK CITI BANK BAJAJ FINANCE BANK OF BARODA
RBL BANK STANDARD CHARTERED BANK TATA CAPITAL BANK OF INDIA
AXIS BANK HSBC BANK ADITYA BIRLA CAPITAL BANK OF MAHARASHTRA
FEDERAL BANK DEUTSCHE BANK ASHV FINANCE CANARA BANK
HDFC BANK DBS BANK UGRO CAPITAL CENTRAL BANK OF INDIA
ICICI BANK BANK OF AMERICA FULLURTON INDIAN BANK
IDFC FIRST BANK ROYAL BANK OF SCOTLAND HERO FINCORP INDIAN OVERSEAS BANK
YES BANK UNITED OVERSEAS BANK LIMITED NEO GROWTH PUNJAB AND SIND BANK
INDUSIND BANK MIZUHO BANK LTD. POONAWALA FINANCE PUNJAB NATIONAL BANK
IDBI BANK SHINHAN BANK EDELLWEISS STATE BANK OF INDIA
BANDHAN BANK SBM BANK PIRAMAL UCO BANK
DCB BANK BANK OF CEYLON L&T FINANCE UNION BANK OF INDIA
DEBT SERVICE COVERAGE RATIO (DSCR) [1:1]
DSCR = CASH PROFIT
OBLIGATIONS
1) DSCR FOR PROPRIETOR :-
PAT + DEPRECIATION + INTEREST ON TERM LOAN
EMI * 12
2) DSCR FOR PARTNERSHIP FIRM :-
PAT + DEP. + INT ON TERM LOAN + INT OF PARTNERS CAPITAL + PARTNERS SALARY
EMI * 12
3) DSCR FOR PRIVATE LIMITED COMPANY :-
PAT + DEP. + INT ON TERM LOAN + DIRECTOR REMUNERATION
EMI * 12
DEBT EQUITY RATION = DEBT
EQUITY
EQUITY 2.5 % : DEBTS 4 %
DEBTS -------- [SECURED LOAN + UNSECURED LOAN + OD + CC]
EQUITY ------ [CAPITAL + RESERVE + SURPLUS]
DEBTORS & CREDITORS
1) DEBTORS = SUNDRY DEBTORS * 365 = 90 DAYS
SALES
2) CREDTORS = SUNDRY CREDITORS * 365 = 90 DAYS
PURCHASE
PER DAY INTEREST = LOAN AMOUNT * RATE OF INTEREST (%)
365
FLAT RATE =
PER LAC EMI * MONTHS = - 100000 – > / YEAR / 1000
Secured Loan Details.
⚫ Home Loan (HL)
1) Resale Property 2) Builder Purchase 3) Under Construction
Home loans are taken majorly to buy house, plot, under construction property, etc
75% of Market Value or 90% of Agreement Value (Whichever is Lower) + Stamp duty registration
Tenor- Maximum 25 years
Rate of Interest – 8.35 % to 9.50%
Income criteria has to met as per policy
0.30 to 1% Processing fees + 0.30% franking charges is applicable
(Insurance is also applicable)
Notice of Intimation (NOI) – 17500/-
Stamp Paper Charges - 3500 to 4000/-
⚫ Loan against Property (LAP)
1) Self-Occupied Residencial Property 2) Self-Occupied Commercial Property 3) Rented Self-Occupied Resi /Commercial
Property
(75%) (65% to 70%) (50% to 60%)
4) Vacant Property (50% to 55%) 4) Industrial Property (50% to 55%)
Loan against property is termed as a secured loan that helps borrowers to meet their personal and
business requirements by mortgaging their property.
75% of Current market value for Residence property & 55% to 60% of commercial property (Self-
Occupied / Vacant / Rented)
Tenor- Maximum 10 to 15 Years
Rate of Interest – 9.20% to 12.50%
Income criteria has to met as per policy
0.10 to 0.15% processing fees + 0.2% franking charges is applicable
Can do under construction property
Notice of Intimation (NOI) - 17500/-
Stamp Paper Charges - 3500 to 4000/-
⚫ Home loan take over & enhancement
Purchase of Commercial Property
Loan against Rent receivable
Working Capital
⚫ Lease Rental Discounting (LRD)
1) LESSEE 2) LESSOR
Lease Rental Discounting is a loan on your property, given by a bank or Non-Banking Financing
Institution. Your rental receipts act as collateral to the loan. The lender grants the loan to the
property owner on the discounted value of lease rentals.
The Loan eligibility will be calculated on the Net Monthly Received Rent.
We can give propose EMI to the clients of the 80% of the Monthly received rent
The Lessor should be a Corporate or a Listed Company.
⚫ Working Capital (WC)
1) OVERDRAFT FACILITY (OD) 2) CASH CREDIT (CC)
OVERDRAFT FACILITY: Overdraft facility is a facility in which the current account holders with the bank can
withdraw more than the effective credit balance in their current account. The interest rate on overdraft
facilities charged only on the amount withdrawn by the user. This overdraft facility is also commonly known as
a credit line facility. Interest will be calculated on the basis of Amount Utilized and on the number of Days
Utilized
For Ex – 1 Lac Rupee OD Facility given by the bank on 17% ROI Then we will calculate interest applicable as
below --- 100000 * 17% = 17000 / 365 = Per Day Interest 46 to 47 Rupee
CASH CREDIT (CC): Cash credit is a short-term type of loan provided by a financial institution to meet the base
requirement of working capital.
PROCESS OF LOAN
APPOINTMENT FIXING
APPLICATION FORM SIGINING & PAPER PICKUP
BANK SHORTLIST
SENT TO BANK FOR LOGIN
CONTACT POINT VERIFICATION (CPV)
CIBIL RUN & CAM PREPRATION
PERSONAL DISCUSSION (PD) WITH BANK CREDIT OFFICER
POST PD DOCUMENTS (IF ANY)
LOAN SANCTIONED
LOAN AGREEMENT SIGNED
DISBURSED
Complete Document Required for Unsecured Business Loan:-
For Proprietorship Firm:
Income Documents
1) Last 2 Year Complete Set of Financials (With ITR Saral Copy , Computation, Profit & Loss, Balance Sheet along
with schedules and annexures with Complete Audit Report)
2) Last 12 Month GST Return 3B Copy
3) Last 12 Month Bank Statement of All Operating Accounts.
Company KYC
1) GST Registration Certificate
2) Udyam Registration Certificate
3) Shop & Establishment License (If Any)
4) Company Rent Agreement and Latest Electricity Bill (If any)
Proprietor and Co-applicant KYC
1) Passport Size Photo
2) Adhar & Pan Card
3) Current Residence Rent Agreement (If any)
4) Residence Latest Electricity Bill
For Partnership Firm / Limited Liability Partnership (LLP):
Income Documents
1) Last 2 Year Complete Set of Financials (With ITR Saral Copy , Computation, Profit & Loss, Balance Sheet along
with schedules and annexures with Complete Audit Report)
2) Last 12 Month GST Return 3B Copy
3) Last 12 Month Bank Statement of All Operating Accounts.
4) Last 2 Year Individual Partners ITR and Computation of Income.
Company KYC
1) Company Pan Card
2) Partnership Deed or LLP Deed
3) GST Registration Certificate
4) Udyam Registration Certificate
5) Company Rent Agreement and Latest Electricity Bill (If any)
All Partner KYC
1) Passport Size Photo
2) Adhar & Pan Card
3) Current Residence Rent Agreement (If any)
4) Residence Latest Electricity Bill
For Private Limited Company/Public Limited Company:
Income Documents
1) Last 2 Year Complete Set of Financials (With ITR Saral Copy , Computation, Profit & Loss, Balance Sheet along
with schedules and annexures with Complete Audit Report)
2) Last 12 Month GST Return 3B Copy
3) Last 12 Month Bank Statement of All Operating Accounts.
4) Last 2 Year Individual Directors ITR and Computation of Income.
Company KYC
1) Shareholding Pattern and List of Directors (On Letterhead of company)
2) Company Pan Card
3) Certificate of Incorporation
4) MOA + AOA
5) GST Registration Certificate
6) Udyam Registration Certificate
7) Company Rent Agreement and Latest Electricity Bill (If any)
All Director KYC
1) Passport Size Photo
2) Adhar & Pan Card
3) Current Residence Rent Agreement (If any)
4) Residence Latest Electricity Bill
In Case of Secured Loan (Property Documents Req.)
(Home Loan/ Commercial Purchase/Loan Against Property/Lease Rental Discounting)
1) All Chain Agreement (From Builder to Customer)
2) Share Certificate Copy
3) Occupancy Certificate (OC)
4) Commencement Certificate (CC)
5) BMC Approved Plan (If Any)
6) Latest Month Maintenance Bill & Receipt
7) List of Document (LOD) & Foreclosure Letter (FC) (If Any)
COMMON QUESTION
For Self Employed for UBL
1- Loan Amount Requirement
2- Nature of Business (Manufacturer/Trader/Service Provider)
3- Business Entity (Proprietorship /Partnership Firm/ Pvt Ltd/ Public Ltd)
4- Last 2 Year Business Annual Turnover (Minimum 60 Lakh Turnover Req.)
5- Last 2 Year Business Annual Net Profit
6- How old is your business (Minimum 3 Year Vintage Req.)
7- Your Residence & Office are Owned or Rented
8- Your Office Location
9- Existing Loan Details of All Loan (Bank Name, Loan Type, Loan Amt, Start Date & Tenure)
10- Total Monthly EMI of All Loan
11- EMI Repayment Check (In Last 6 Month No late Payment and No Bounce in any loan)
12- Recently Applied for Loan in Last 6 Months (If Applied, Which Bank & What is the Status)
For Self Employed Professional (CA/CS/Doctors/Architect)
1- Loan Amount Requirement
2- Last 2 Year Gross Receipt
3- Last 2 Year Net Receipt
4- For how long you been practicing
5- Your Residence & Office are Owned or Rented
6- Clinic or Office Location
7- If Doctor which degree (MBBS/BHMS/BAMS/BDS/MDS/MD/MS)
8- Existing Loan Details of All Loan (Bank Name, Loan Type, Loan Amt, Start Date & Tenure)
9- Total Monthly EMI of All Loan
10- EMI Repayment Check (In Last 6 Month No late Payment and No Bounce in any loan)
11- Recently Applied for Loan in Last 6 Months (If Applied, Which Bank & What is the Status)
For Personal Loan (Salaried Person)
1. Loan Amount Requirement
2. Name of the Company
3. Monthly Gross Salary
4. Net Take Home Salary (Minimum 25k Salary Req.)
5. Job Vintage (How long our client is working in same company)
6. Total Job Experience
7. Residence Owned or Rented
8. Existing Loan Details of All Loan (Bank Name, Loan Type, Loan Amt, Start Date & Tenure)
9. Total Monthly EMI of All Loan
10. EMI Repayment Check (In Last 6 Month No late Payment and No Bounce in any loan)
11. Recently Applied for Loan in Last 6 Months (If Applied, Which Bank & What is the Status)
For Secured Loan – (Property Related Question Added)
1- Property Location
2- Property Type (Residential/Commercial or Industrial)
3- Property Market Value
4- Loan Free or Loan Going on
5- Property Having OC, CC or BMC Approved Plan
