eCircular
Department: PBU-PERSONAL LOANS
Sl.No.: 754/2019 - 20
Circular No.: NBG/PBU/PL-PENSION/40/2019 - 20
Date: Sat 31 Aug 2019
The Chief General Manager,
State Bank of India,
Local Head Office,
All Circles.
Dear Sir/ Madam,
MASTER CIRCULAR
PENSION LOANS
We have, periodically, issued instructions to Branches/LHOs and other establishments
with regard to Pension Loans. A Master Circular incorporating all the existing
guidelines/instructions/directives ha ve been prepared and is appended. This Master
Circular consolidates all the instructions issued up to 31
st
July, 2019 by us from time to
time. The individual circulars consolidated now are listed in the Appendix. The following
Schemes have been covered in this Master Circular:
A. SBI Pension loan and Top-up loan.
B. Jai Jawan Pension Loan.
C. Pension loan to coal mines provident fund (CMPF) Pensioners
D. YONO (Lotus project) - PAPL – Pre Approved Pension loan (PAPNL).
E. SBI Pension loan scheme: Pension loan to pensioners of PSUs/Treasuries.
Yours faithfully,
-Sd/-
(Ajay Kumar Khanna)
Chief General Manager
(Personal Banking)
Page | 1
MASTER CIRCULAR
PENSION LOANS
State Bank of India
Personal Loan Department
Personal Banking Business Unit
Corporate Centre
Mumbai
Page | 2
INDEX
S.No.
Description
Page
No.
1.
-Introduction
5
A.
SBI PENSION LOAN
2.
- Eligibility criteria
5
3.
- Loan amount
6
4.
- Margin
6
5.
- Age and repayment period
6
6.
- Security
6
7.
- Facility
6
8.
- Processing Fee.
7
9.
- Rate of interest
7
10.
- Documentation.
7
11.
- Disbursement
7
12.
- Risk scoring model (for all pension loan variants)
7
13.
- Checklist for pension loan
8
14.
- Pre sanction survey
8
15.
- CIBIL report
8
16.
- Pre-payment penalty
8
17.
- Penal interest
8
18.
- Facility for availment of loan by Defence and Para military
personnel from non-home branch whose PPOs are maintained
by us.
8
B.
TOP UP LOAN
9
C.
JAI JAWAN PENSION LOAN
9
1.
-Introduction
9
2.
-Purpose
9
3.
-Eligibility
9
4.
-Loan Amount
10
5.
-Security
10
6.
-Facility
10
7.
-Processing Fee
10
8.
-Rate of interest
10
9.
-Documentation
10
10.
-Disbursement
10
11.
-Age and Repayment period
10
12.
-Type of loan
10
13.
- Place for availment of Loan for Pensioners
11
Page | 3
14.
- Provision of 2
nd
loan
11
D.
- Pension loan to coal mines provident fund (CMPF)
Pensioners.
11-13
E.
- Retail Asset Credit Centre (RACC) – Hub and Spoke model
role sanctioning entities for templated loans (Pension
loans): Clarification.
13
F.
YONO (Project Lotus Initiative): Personal Banking
Advances: PAPL, Pension Loans as pre-approved personal
loan on YONO platform.
14
G.
SBI Pension loan scheme: Pension loan to pensioners of
PSUs
15
ANNEXURE
1.
Annexure – 1 Application-Cum-Authority Letter
2.
Annexure- A SOP CMPF Pension and Annex from CMPF-I to
CMPF-IX
3.
Annexure -C Pension loan check list
4.
Annexure B- Pension Loan Score Card
5.
Annexure I - A letter to pensioner
6.
Annexure I - B letter to family pensioner
7.
Annexure II - A letter to pensioner for top-up loan
8.
Annexure II - B letter to family pensioner for top up
9.
Annexure-III- SOP-PAPL new product for Branches
10.
Annexure -PL-1 undertaking from pensioner
11.
Annexure - PL- II Irrevocable Undertaking from pensioner
12.
Annexure - PL- III Advice for not permitting shifting of pension
A/C
Page | 4
Introduction:
Branches maintaining pension accounts and paying pensions to the retired employees of
the Central, State Governments., SBI and PSUs whose Pension Payment Orders (PPOs)
are maintained with our Bank as well as maintained at Treasury/PSUs can extend financial
assistance to them to meet their personal expenses, on fulfilling the eligibility criteria.
Loans may also be granted to the deceased pensioner’s spouse who has been sanctioned
a family pension after death of the pensioner. Further, Bank is extending loans to certain
organizations like Coal Mines Provident Fund (CMPF) pensioners. These loans can be
applied through Branch channel/online through OCAS. Pre-approved customers can also
avail these loans through YONO digitally in 4 clicks.
A. SBI PENSION LOAN: (Product Code 6451-4011)
1. Eligibility Criteria:
A. Pensioners:
a) All Central, State Government pensioners, and SBI Pensioners whose pension
accounts are with us and their PPOs are maintained by Centralized Pension
Processing Centre (CPPC) of SBI.
b) Pensioners whose pensions are disbursed by Govt. Treasuries by cheques drawn
in favor of our branches as per mandate of the pensioner are also eligible
subject to the following conditions:
i. The original Pension Payment Order (PPO) remains in the custody of the
treasury and the pensioner gives a mandate to the Treasury for payment of
pension through a particular branch of a Bank.
ii. The pensioner concerned furnishes an irrevocable undertaking that he will
not amend his mandate to the Treasury to pay his pension from the branch,
during the currency of a loan availed by him from SBI.
iii. The Treasury concerned consents in writing that it will not accept any request
from the pensioner to transfer his pension payment to any other bank/
Branch till an NOC is issued by the Bank.
Obtention of consent in writing mentioned in Para 2.A.b.iii can be waived with
the following conditions:
Particular
Revised Norms
PPOs maintained
by respective
Treasuries.
(Product code
6450-4239 for
treasury
pensioners)
i) CIBIL score of pensioner to be more than 650 (-1
may be considered in case of no credit history).
ii) RSM Score in LOS to be more than 45 (Grade 1 to
Grade 6), as against the clear sanction of more than
40 (Grade 1 to Grade 7).
iii) A premium of 50 bps to be charged over the
applicable card rate is applicable.
iv) The other two conditions as mentioned in Para 2.b.i
& ii above, to be invariably adhered to.
Page | 5
c) PSU Pensioners who maintains their pension accounts with SBI whereas PPOs
are maintained by PSUs themselves are also eligible with certain stipulations
mentioned in the specific scheme separately.
B. Family Pensioners:
i. Family pensioner, i.e., spouse authorized to receive pension after the death
of the pensioner are eligible wherever applicable.
2. Loan Amount:
A. For Pensioners:
Minimum Rs.25,000/=
Maximum of 18 months’ pension with a ceiling of
a. Rs.14.00 lacs for pensioners who are up to 72 Years of age.
b. Rs.12.00 lacs for pensioners who are above 72 years and up to 74 years of
age.
c. Rs.7.50 lacs for pensioners who are above 74 years and up to 76 years of
age.
EMI/NMP (Net Monthly Pension) not to exceed 50%.
B. For Family Pensioners:
Minimum: Rs.25,000/-
Maximum of 18 months’ pension with a ceiling of
a. Rs.5.00 lacs for pensioners who are up to the age of 72 Years.
b. Rs.4.50 lacs for pensioners who are above 72 years and up to 74 years of age.
c. Rs2.50 lacs for pensioners who are above 74 years and up to 76 years of age.
EMI/NMP not to exceed 33%.
3. Margin: NIL
4. Age and Repayment period: In EMIs commencing from the pension payable one
month after disbursal of loan. The branch will deduct the installment at the time of
payment of pension.
For Pensioner:
For Family pensioner:
Age at the time of loan sanction
Repayment
Period
Age at the time of full
repayment
Up to 72 years
60 months
77 years
More than 72 years and up to 74 years
48 months
78 years
More than 74 years and
up to 76 years
24 months
78 years
Age at the time of loan sanction
Repayment
Period
Age at the time of full
repayment
Up to 72 years
60 months
77 years
More than 72 years and up to 74 years
48 months
78 years
More than 74 years and up to 76 years
24 months
78 years
Page | 6
5. Security:
A. Primary Security: NIL.
B. Collateral Security (Third Party Guarantee):
For Pensioners: Third party guarantee (TPG) of the spouse eligible for family
pension. In the absence of the spouse, TPG of any other family member or a third
party worth the loan amount.
For Family Pensioners: Third party guarantee of a person who has been
maintaining a satisfactorily conducted account with the Bank; preferably of the
son/daughter of the family pensioner.
6. Facility: Demand Loan
7. Processing Fee:
Pensioners: 0.50% + applicable GST with a minimum of Rs.500+ applicable GST
Family pensioners: 0.50%+ applicable GST with a minimum of Rs.250+ applicable
GST.
SBI Pensioners: No processing fee.
Processing fee to be recovered from the respective pension/savings bank account
before disbursement of the loan.
8. Rate of interest: ROI is 3.35 % spread over 2 year MCLR and effective interest rate
with no reset.
(Please refer latest circular under Personal Loans for current ROI)
9. Documentation:
i. Application-cum-Authority Letter as per Annexure-1.
ii. DP note on COS 228 to be executed by the pensioner in favour of the guarantor
and endorsed by the guarantor in favour of the Bank.
iii. DP Note Take Delivery Letter.
iv. Copy of PPO or any other document where authentic details of Age of the
pensioner and the Spouse are available.
v. Where the original Pension payment Order remains in the custody of the Treasury
and the pensioners gives a mandate to the Treasury for payment of pension
through a particular branch of a bank, the following additional documents needs to
be obtained:
An Irrevocable undertaking from the Pensioner concerned that he will not
amend his mandate to the Treasury to pay his pension from the branch, during
the currency of a loan availed by him from SBI.
A consent in writing from the Treasury concerned that it will not accept any
request from the pensioner to transfer his pension account to any other bank/
branch till an NOC us issued by the Bank
10. Disbursement: Disbursement of the loan amount should be made by credit to the
running Pension account (Savings/ Current Account) of the pensioner.
11. PENSION LOANS RISK SCORING MODEL
Please refer Annexure-B for score card.
Page | 7
12. Checklist for pension loan:
In view of the new instructions/ modifications taken place from time to time, a revised
Document-Checklist for Pension Loans is placed as Annexure-B.
13. Pre Sanction Survey: Not stipulated.
14. CIBIL Report: CIBIL report duly verified by sanctioning/processing authority will form
the part of the loan documents.
15. Pre-payment penalty: Any prepayment of EMIs in full or in part and closure of account
before the end of term will attract the prepayment charges of 3% on prepaid amount.
No prepayment/foreclosure charges will be applicable if the account is closed from the
proceeds of a new loan account opened under the same scheme.
16. Penal interest: In the event of default in payment of any instalment or any irregularity
in the loan account, penal interest at the rate of 2% p.m. over the stipulated interest
rate with monthly rests will be charged for the irregular amount and overdue period.
FACILITY FOR AVAILMENT OF LOAN BY DEFENCE AND PARAMILITARY
PERSONNEL FROM NON-HOME BRANCH WHOSE PPOs ARE MAINTAINED BY US
Presently Defence and Paramilitary Pensioners [ i.e., Pensioners of Armed Forces,
including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.),
Coast Guards, Rashtriya Rifles and Assam Rifles] whose PPOs are held with the Bank
are sanctioned Pension Loan under SBI Pension Loan Scheme.
However, at times these pensioners especially those who have retired early are re-
employed with some other organizations. These pensioners have to visit their Home
Branch to avail Pension Loan. In view of this hardship, it has been decided to permit
these pensioners to avail Pension Loan at Non-Home Branch provided undernoted
conditions are strictly complied:
Criteria
Guidelines
Place for
availment
of Loan for
Pensioners
While sanctioning this loan, the branch has to ensure that the pension
account is opened/ converted as DSP Pensioner/PMSP Pensioner/
ICGSP Pensioner with appropriate customer types and product
codes.
Loan can be sanctioned at home branch or if he/she is reemployed at
any branch at his place of present posting (proof of re-employment
and work place has to be submitted).
The non-home Branch before processing the loan should
invariably login to the Pension Software application to cross
check the Pensioner’s credentials as given in the PPO, a copy of
which is received from the Pensioner before sanction of loan.
The operating units should only disburse the loan to the
Page | 8
pensioner’s pension account after tallying from the Pension
Software application.
The loan account as stated above should only be created under
the CIF on which Pension Payment account exists. The
operating staff before processing of loan should confirm that
there is no existing Pension Loan account under his/her CIF
either at Home Branch or any other Branch.
By extending Pension Loan to re-employed Defence Personnel at
these Non-home Branches, we can get an opportunity to bring in our
fold their salary accounts and also to market other Retail products
including cross selling.
Disbursement
BY Credit to Savings Bank/Current Account of the Pensioner
(Pension Payment Account) even if the loan is sanctioned at non-
home Branch.
This will safeguard the Bank from any attempt of impersonation
and also make aware the Home Branch about sanction of
Pension Loan by a particular Non- Home Branch.
C. TOP-UP LOAN
Top-up loan (2nd loan) can be sanctioned to Pensioner and Family pensioner after 1 year
of disbursement of the 1st loan provided the 1st loan has been satisfactorily conducted and
is regular at the time of sanction of 2nd Loan. There cannot be more than 2 Pension Loans
standing in the name of a borrower. However this is subject to the overall EMI/NMP ratio of
50% for Pensioner and 33% for the Family Pensioner. The sum total of outstanding in the
1st loan and limit of 2nd loan in no case should exceed the pensioner’s entitlement at the
time of availment of 2
nd
loan.
An offer letter highlighting the features of this new Scheme sent to all Pension and
Family Pension account holders (specimen Annexure-I A & I B) and a top-up loan
offer letter to all existing Pension and Family Pension borrowers (specimen
Annexure-II A & II B). The Circles are advised to get these specimens translated in
the regional languages of their area of operations.
D. JAI JAWAN PENSION LOAN : (product code 6450-2258)
1. Introduction:
Pension Loan Scheme for Pensioners of Armed Forces, including Army, Navy and Air Force,
Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and
Assam Rifles etc. whose Pension Payment Order is with us.
Family Pensioners of Defence & Paramilitary Personnel will continue to avail Pension Loan
under SBI Pension Loan Scheme.
2. Purpose: To meet personal expenses of young Defence pensioners.
Page | 9
3. Eligibility: Pensioners of Armed Forces, including Army, Navy and Air Force, Paramilitary
Forces, Coast Guards, Rashtriya Rifles, CRPF, BSF, ITBP etc.
4. Pensions up to the age of 76 years are eligible.
5. Loan Amount:
Minimum Rs.25,000/=
Maximum of 36 months’ pension with a ceiling of
o Rs.14.00 lacs for pensioners who are up to 56 Years of age.
Maximum of 18 months’ pension with a ceiling of
o Rs.14.00 lacs for pensioners who are above 56 years and up to 72 years of age.
o Rs.12.00 lacs for pensioners who are above 72 years and up to 74 years of age.
o Rs. 7.50 lacs for pensioners who are above 74 years and up to 76 years of age.
EMI/NMP not to exceed 50%.
6. Security:
A. Primary Security: NIL
B. Collateral Security (Third Party Guarantee): Third party guarantee (TPG) of the spouse
eligible for family pension. In the absence of the spouse, TPG of any other family member or
a third party worth the loan amount.
7. Facility: Term Loan
8. Processing Fee: No processing fee to be charged.
9. Rate of Interest: ROI is 3.35 % spread over 2 year MCLR and effective interest rate with
no reset.
(Refer latest Circular under Personal loans for current ROI)
10. Documentation: As per SBI Pension Loan scheme
11. Disbursement:
Disbursement of the loan amount should be made by credit to the running
pension account (Savings/Current Account) of the pensioner.
By credit to savings Bank/Current Account of the Pensioner (Pension Payment Account)
even if the loan is sanctioned at non-home Branch. This will safeguard the Bank from
any attempt of impersonation and also to make aware the Home Branch about sanction
of Pension Loan by a particular Non-Home Branch
12. Repayment: In maximum 84 EMIs commencing from the pension payable one month
after disbursal of loan through SI, or by debit to the pension a/c for recovery of
EMIs.
Age at the time of loan sanction
Repayment Period
Age at the time of
full repayment
Up to 56 years
84 months
63 years
More than 56 years and up to 72 years
60 months
77 years
More than 72 years and up to 74 years
48 months
78 years
More than 74 years and up to 76 years
24 months
78 years
13. Type of Loan:
Term loan. The loan should strictly be opened under the same CIF on which Pension
Payment Account exists.
Page | 10
14. Place for availment of Loan for Pensioners:
Loan can be sanctioned at home branch or if he/she is re-employed at any branch at his
place of present posting (proof of re-employment and work place has to be submitted).
While sanctioning this loan, the branch has to ensure that the pension account is opened/
converted as DSP Pensioner/PMSP Pensioner/ ICGSP Pensioner with appropriate
customer types and product codes. The non-home Branch before processing the loan
should invariably login to the Pension Software application to cross check the
Pensioner’s credentials as given in the PPO, a copy of which is received from the
Pensioner before sanction of loan. The operating units should only disburse the loan to
the pensioner’s pension account after tallying from the Pension Software application.
The loan account as stated above should only be created under the CIF on which
Pension Payment account exists. The operating staff before processing of loan should
confirm that there is no existing Pension Loan account under his/her CIF either at Home
Branch or any other Branch.
15. Provision of 2nd Loan:
No provision of 2nd loan. Fresh Loans can be taken after liquidating the first loan only
after 12 months. The foreclosure charges will be applicable if the existing loan account
is not closed from the proceeds of a new SBI Jai Jawan Fixed Interest Rate Loan availed
by him/her.
E. PENSION LOAN TO COAL MINES PROVIDENT FUND (CMPF) PENSIONERS:
(Product code 6451-4012)
With a view to increase our market share in Pension Loans, it has been decided to
offer Pension Loan to the pensioners of Coal Mines Provident Fund (CMPF). Salient
features of the scheme are as under:
S.No.
Parameters
Description
1
Name of the
Scheme
SBI Pension Loan to CMPF Pensioners
2
Product Code
6451-4012: MC-DL-PENSION LOAN-CMPF
3
Eligibility
All CMPF Pensioners (Except Family and Children
Pensioner) whose pension accounts are maintained with
the SBI.
4
Loan Amount
Minimum Rs.25,000/-
Maximum: 18 months’ Net Monthly Pension (NMP) but not
exceeding Rs.3.00 lacs, subject to EMI/NMP not
exceeding 50%.
5
Age
Maximum Age at the time of Sanction of Loan : 65 Years
6
Margin
NIL
7
Security
A. Primary : NIL
B. Collateral: Third Party Guarantee of a person good for
the loan amount who has been maintaining a satisfactorily
conducted account with the Bank; preferably
spouse/son/daughter of the pensioners.
8
Facility
Demand Loan
Page | 11
9
Rate of Interest
(Fixed)
As applicable in case of SBI Pension Loan i.e., 2 Yr.
MCLR) + 3.35% (Spread). No Reset of Interest during the
currency of Loan.
(Please refer Circular under Personal Loans for current
ROI)
10
Processing Fee
As applicable in case of SBI Pension Loan i.e., 0.50% of
the loan amount + applicable GST, Minimum : Rs.500/- +
Applicable GST
11
Risk Mitigation
The following Risk Mitigation measures to be ensured by
the loan sourcing/sanctioning Branch and Dhanbad Branch
(which is the custodian of PPOs).
(a) The loan processing Branch on receipt of the loan
application and copy of the PPO from the Pensioner
would request Dhanbad Branch to fax/mail the duly
certified scanned copy of the PPO and copy of the
latest Life Certificate held by them to cross check the
genuineness of the PPO, to ascertain the age and to
avoid any impersonation.
[No loan will be sanctioned unless PPO submitted
by the Pensioner is cross checked by the Branch
with the certified copy of PPO received from
Dhanbad Branch ]
(b) Once the Pension Loan is sanctioned, the Branch will
immediately send a request to Dhanbad Branch for
noting in their Master data about availment of Pension
Loan.
(c) Similarly, once the Pension Loan is liquidated and
closed, the Branch will immediately send a request to
Dhanbad Branch for un-marking of noting in their
Master data about closure of the Pension Loan.
To mitigate the risk, a clause in the Agreement between
the Bank and CMPF has been added as under:
CMPF will not allow shifting of pension account of the
pensioner to any other Bank during the currency of the
Pension Loan.
(d) Further, an irrevocable unstamped undertaking from the
pensioner will be taken that he/she will not amend his/her
mandate with the CMPF for change in pension payment
Bank during the currency of the loan.
12
Authorized
Branches
All Branches where the Pension accounts are maintained.
13
Documents
Loan Application –cum- Authority Letter
DP Note to be executed by the pensioner in favor of
the guarantor and endorsed by the guarantor in
favor of the Bank.
Page | 12
DP Note Take Delivery Letter
Arrangement Letter
Copy of the PPO certified by Dhanbad Branch
Latest copy of the Life Certificate.
Undertaking - Other Deductions(SOP Annex-
CMPF-I)
Irrevocable Unstamped Undertaking (SOP Annex
CMPF-II)
Advice for Not Permitting Shifting of Pension A/C to
CMPF (SOP Annex-CMPF-III)
Request for Marking/Noting In Master File(SOP
Annex CMPF-IV)
Confirmation of Noting in Master File received from
Dhanbad Branch (SOP Annex-CMPF-V)
14
Disbursement
Disbursement of loan to be made by credit to the existing
Savings/Current Account of the pensioner.
15
Repayment
i) As applicable to SBI Pension Loan, in 60 EMIs,
commencing after one month of the disbursal of the loan.
ii) The Branch will deduct the installment by set-up of SI
between Pension payment account and the Pension loan
account.
iii) The date of SI towards EMI to be set coinciding with the
date of Pension disbursement.
2. All other terms and conditions as applicable to SBI Pension Loan Scheme will be
applicable under the “SBI Pension Loan to CMPF Pensioners Scheme”.
3. Detailed Standard Operating Procedure (SOP) document is enclosed (Annexure-A),
which should be read as part of the Circular and the process thereof is meticulously
followed by the operating functionaries.
F. RETAIL ASSET CREDIT CENTRE (RACC) – HUB & SPOKE MODEL ROLE
SANCTIONING ENTITIES FOR TEMPLATED LOANS (XPRESS CREDIT &
PENSION LOANS): CLARIFICATION
Please refer to e-Circular No. NBG/ABU/BP-RACC/2/2018 - 19 dated 17 Sep 2018
issued by Agri Business Unit, Corporate Centre on the implementation of Retail Asset
Credit Centre (RACC) model. Process Flow for Spoke/ Hub Branches for processing/
sanction and disbursal of the templated loans has been defined in Standard Operating
Procedure (SOP) page no. 8 for templated loans (Xpress Credit & Pension Loans).
2. In this connection we further clarify as under:
i). Proposals within the sanctioning powers of the Hub/ Spoke/ Campus/ Captive
branches will be sanctioned and disbursed at the branches itself.
ii). Proposals beyond the powers of the above branches to be sent to RACC if the branch
is linked to RACC and the proposals fall within the financial delegation of RACC.
iii). In other cases, i.e. a. Proposals beyond the powers of RACC &
b. Proposals beyond the powers of branches which are not linked to RACC, will be sent
to RBOs directly for sanction, as is being done presently.
Page | 13
iv. Unlike Agri & SME Loans, Personal Segment Templated loans such as Xpress Credit
& Pension loans, have a TAT of 1-3 days. Respective RBO being the Controller of RACC,
are advised to therefore, ensure that the Pre-Sanction Survey (where applicable) is
carried out on the same day and the loan is processed and disbursed within the
permissible TAT, invariably.
G. YONO (Project Lotus Initiative): PERSONAL BANKING ADVANCES: PAPL
INCLUSION OF PENSION LOANS AS PRE-APPROVED PERSONAL LOAN ON
YONO PLATFORM:
A new digitized unsecured personal loan product ‘Pre Approved Personal Loan’ was
introduced on YONO platform vide Circular no- NBG/PBU/PL-PERLOANS/39/2017 - 18
dated 6th November 2017. In view of the encouraging response for the Bank’s maiden
digital product and to increase our penetration in digital platform, it has now been decided
to offer Pension Loans up to Rs.2,50,000/- in the pre-approved format.
2. Key Features of the Product:
Pension loans upto Rs. 2.5 lakhs will be offered as Pre-approved Loans in
addition to existing PAPL upto Rs.2 lakhs.
Simplified 4 click process for availing loan through app/portal with instant
disbursement.
End-to-end digitized process (no branch visits and no documentation).
The eligible customers will be pre-selected on the basis of the analytic engine.
Rule engine based loan offers to different categories of existing P-segment
Customers.
In case, a customer is eligible for more than one product out of all the digital
products, he/she will be offered the product with the highest eligibility under
PAPLs.
Pitching of the offers through SMS, e-mail and push notifications to the eligible
Customers.
The SOP in this regard is attached as Annexure-III.
3. ELIGIBILITY CRITERIA for PRE-APPROVED PENSION LOANS
Sr.
No.
Parameters
Details
1
Purpose
Any personal purpose other than speculative purposes.
2
Eligibility
Bank’s existing customers will be pre-selected for this product
offering based on following eligibility criteria:
Customer’s PPOs must be with Bank; Treasury & family
Pensioners are not eligible.
Account should be in single/joint name.
Residential Status of the Customer should be “Resident Indian.”
Account should be KYC compliant.
Any of Aadhaar/ Voter ID / Passport / Driving License/PAN
should be available at CIF.
Page | 14
Age of the customer should be less than 66 years.
There should not be any existing Pension account under the CIF
None of the existing loan accounts under the CIF should have
SMA 2 and above.
None of the existing loan accounts under the CIF had been NPA
in last 12 months.
None of the existing loan accounts of the customer any
Bank/Financial Institutions should have been NPA (i.e. DPD>90
days) in last 12 months.
There must be at least one credit every month for last 12 months
The pre-selected customers will be intimated about their eligibility /
selection for PAPL through SMS/ email/ pop-up messages/ in-app
notifications/the offer section of Internet Banking.
3
Nature of
Facility/
Product code
Term Loan
64504215-MC-TL-PRE-APROVD-PEN-LOAN
4
Availability of
the Facility
PAPNL is available only through “YONO” App/ “yonosbi.com” Portal.
The loan account will be parked in the Home Branch (which
maintains the Savings Account considered for PAPL eligibility)
5
Loan Amount
Minimum Limit: ₹ 25000/-
Maximum Limit: 18 times NMP subject to maximum of ₹2,50,000/-
Subject to EMI/NMP ≤50%
NMP= Median of Monthly pension amount for last 6 months
6
Loan Tenure
Maximum: 60 months or (70Years- Age of customer(Years and
Months) as on Quarter end date of data extraction i.e. 31st March,
30th June, 30th September, 31st December) in months whichever is
lower Subject to EMI/NMI ≤ 50%
7
Rate of
Interest
3.35% above 2 year MCLR with no reset (currently 8.35%)
effective rate 11.70%
8
Security
Nil (Unsecured Loan)
9
Processing
Fee
Rs 1000/-+ Applicable Tax
10
Moratorium
Not Applicable
11
Repayment
The Loan will be repayable by way of EMIs. Standing Instruction
(SI) for EMI payment will be automatically set up on Savings
Bank Account of the customer.
Loan Account will be closed / pre-closed by the Home Branch
after recovering residual dues from the Customer’s Savings/
Current Account.
12
Penal Interest
If the irregularity in loan account exceeds EMI, a penal interest
at 2% p.m. (over and above the applicable rate of interest) will be
charged on the overdue amount for the period of default.
If part instalment EMI remains overdue, no penal interest will be
charged.
13
Pre-payment
Penalty
No pre-payment or part-payment penalty applicable.
Page | 15
14
Number of
PAPLs
availed
Only one PAPNL can be availed at any point of time.
Multiple PAPNLs are not permitted even if a customer has
availed lower loan amount than their eligibility/loan offered.
In case the loan account is closed before any of the quarter’s
end, a customer will not be eligible for taking a new loan till the
start of next calendar quarter, which will also be subject to their
eligibility for PAPNL/PAPL facility in the subsequent quarter(s).
15
Validity of
Offer
The offer to the pre-selected customers will be valid till the end of
Calendar Quarter in which they are offered the loan.
The list of Accounts pre-selected for this offer will be dynamic and a
new list will be prepared on quarterly basis based on the eligibility
criteria as stated above. The new list will be updated at the backend
every calendar quarter so that all ineligible account holders, who
may be previously eligible, are removed from the list.
16
RSM
As per extant Score card applicable for Pension Loan
17
Documentation
The acceptance of Terms & Conditions of loan, as listed on the
App/ Portal screen will be obtained digitally, by ticking the check
box by the customer.
No physical documents will be exchanged between the Customer
& the Bank.
H. SBI Pension loan scheme: Pensioners of PSUs (product code 6450-4240)
As per the feedback from various Circles, and also keeping in view the availability of
abundant untapped potential of quality business from retired employees from State
PSUs (eligible under Xpress Credit Scheme) where PPOs are maintained by the PSUs
themselves, it has been decided to modify our Pension Loan scheme as under:
Particular
Norms
Pensioners of
PSUs whose
PPOs are
maintained by
PSU themselves.
Product code
6450-4240
* Pensioners of all such PSUs will be extended Pension
Loans which are already covered under our Xpress Credit
scheme, subject to approval of PSU by CGM (Circle).
In case of Loss-Making state PSU not covered under
Xpress Credit scheme & enough potential is available for
Pension Loans, approval to be obtained from DMD (RB) as
in Xpress credit Scheme.
* Once the PSU is approved by CGM (Circle), the details of
the PSU will be advised to PBBU, Corporate Centre for
necessary incorporation in LOS.
* All such loans will be sanctioned subject to following
stipulations:
a. RSM Score in LOS to be more than 45 (Grade 1 to
Grade 6), as against the clear sanction of more than
40 (Grade 1 to Grade 7).
b. The pensioner concerned will furnish an
irrevocable undertaking that he will not amend his
mandate to the PSU to pay his pension from that
Page | 16
branch, during the currency of a loan availed by him
from SBI.
c. Regarding obtention of consent/undertaking from the
PSU’s Pension Disbursing Authority, there may be
two scenarios:
Scenario 1: In case, the PSU concerned consents in
writing as per para 2.b.that it will not accept any request
from the pensioner to transfer his pension payment to any
other Bank/ Branch till a NOC is issued by our Bank/
Branch, the proposal to be treated at par with Treasury
Pensioners with NOC. Applicable ROI to be 335 bps above
2-yr MCLR (8.35%) i.e. 11.70% at present (with no reset).
Scenario 2: In case the PSU does not give a written
consent as mentioned above, CIBIL score of pensioner
should be more than 650 for consideration under the
scheme (-1 may be considered in case of no credit history)
& a premium of 50 bps to be charged over the card rate.
Applicable ROI to be 385 bps above 2-yr MCLR (8.35%) i.e.
12.20% at present (with no reset).
Details of such loan and the undertaking received from
the Pensioner is to be advised to concerned PSU
invariably.
All other terms & conditions as stipulated under Pension Loan scheme will strictly be
applicable.
Page | 17
Appendix: Master Circular
List of Circulars consolidated in the Master Circular-Pension Loans
S
No.
Date
Circular No
Subject
1.
22.11.2005
NBG/PBU/PL-
PENSION/15/2005 - 06
Loan Scheme for Pensioners
2.
23.06.2006
NBG/PBU/PL-JAI
JAWAN/15/2006 -07
Jai Jawan Pension loan for Young Defence
Pensioners
3.
11.07.2009
NBG/PBU/PL-
PENSION/5/2009 - 10
SBI Loans to Affluent Pensioners
4.
01.08.2009
NBG/PBU/PLPENSION/7/2009
- 10
SBI Loans to Affluent Pensioners – Product
Code
5.
10.08.2009
NBG/PBU/PLPENSION/8/2009
- 10
SBI Loans to Affluent Pensioners –
Corrigendum
6.
04.10.2014
NBG/PL-PERLOANS/41/2014-
15
SBI Loans to pensioners and introduction of top-
up loan
7.
09.10.2014
NBG/PL-PERLOANS/42/2014-
15
SBI Loans to pensioners and introduction of top-
up loan modification
8.
09.11.2015
NBG/PBU/PL-
PENSION/44/2015-16
Facility for DSP and PMSP pensioners to avail
pension loans non-home branch whose PPOs
maintained by us.
9.
11.05.2016
NBG/PBU/PL-JAI
JAWAN/15/2016 - 17
Jai Jawan pension loan modifications.
10.
11.08.2016
NBG/PBU/PL-
PERLOANS/42/2016 - 17
UPL revised scoring model for unsecured loans.
11.
31.08.2016
NBG/PBU/PL-
PERLOANS/45/2016 - 17
Scoring model modifications.
12.
22.12.2016
NBG/PBU/PL-
PENSION/66/2016 - 17
Pension loan to coal mines provident fund
(CMPF) pensioners.
13.
08.10.2018
NBG/PBU/PL-
PERLOANS/39/2018 - 19
Retail Asset Credit Centre (RACC) – Hub and
Spoke model role sanctioning entities for
templated loans (Xpress credit & Pension
loans): Clarification.
14.
11.10.2018
NBG/PBU/PL-LOS/41/2018 -
19
Revised scoring model.
15.
13.12.2018
NBG/PBU/PL-
PERLOANS/48/2018 - 19
YONO (Project Lotus Initiative): Personal
Banking Advances: PAPL, Pension Loans as
pre-approved personal loan on YONO platform.
16
03.04.2019
NBG/PBU/PL-pension/1/2019 -
20
SBI Pension loan scheme: Pension loan to
Treasury pensioners and pensioners of PSUs
17.
15.04.2019
NBG/PBU/PL-
PENSION/3/2019 - 20
New product code for treasury and psu
pensioners.
18.
13.06.2019
NBG/PBU/PL-
PERLOANS/16/2019 - 20
Document checklist for pension loan
Page 1 of 52
ANNEXURE PAGE-NO
Annexure – 1 Application-Cum-Authority Letter
2-3
Annexure - PL- II Irrevocable Undertaking from pensioner
4
Annexure - PL- III Advice for not permitting shifting of pension A/C
5
Annexure- A SOP CMPF Pension and Annex from CMPF-I to CMPF-
IX
6-23
Annexure I - A letter to pensioner
24
Annexure I - B letter to family pensioner
25
Annexure II - A letter to pensioner for top-up loan
26
Annexure II - B letter to family pensioner for top up
27
Annexure -PL-1 undertaking from pensioner
28
Annexure-III- SOP-PAPL new product for Branches
29-50
Annexure -C Pension loan check list
51
Annexure B- Pension Loan Score Card
52
Page 2 of 52
Annexure: 1
APPLICATION-CUM-AUTHORITY LETTER
The Branch Manager
State Bank of India
……………….Branch
Dear Sir/Madam,
Loan Scheme for Pensioners
Pension Account No…………….. of
Shri/Smt ……………………………
This has reference to my pension account No………………… with your Branch. Please grant
me a Demand Loan of Rs………………… (Rs………….......……….. only) under ‘SBI Loan
to Pensioners / Jai Jawan Pension Loan’ to enable me to meet certain personal expenses.
Details of my monthly income etc. are given hereunder:
a) Details of Monthly Income: From Pension (i):
From other Sources (ii):
Total (i+ii):
b) Details of other accounts:
with
Account No.
Amount (Rs.)
i) SBI ……………………..................Branch
ii) SBI ……………………..................Branch
iii) ……………………………….....................
iv) ……………………………….....................
………………
………………
………………
Rs. ……………
Rs. ……………
………………..
2. I undertake to repay the proposed loan together with interest at the rate
applicable, which is currently ………..% above 2 YEAR MCLR without reset, effective
current rate of interest ……..% p.a. at monthly rests, in …….Equated Monthly Installments
(EMI), commencing from the month of ……….200…..
I also understand that the amount of EMI is only a notional amount fixed on the basis of
the current rate of interest and any charges debited to the account during the currency of
loan will be liable to liquidate residual amount, if any, remaining
outstanding
in my Demand
Loan account, after the aforesaid repayment period.
3. I hereby authorize you to recover the amount of equated monthly installment of
Rs._____________ from the pension payable to me every month.
4. I also give an undertaking hereby to not to revoke this authority to recover the EMIs
from my pension till whole of the amount of loan together with interest etc. has been fully
recovered by the Bank.
Page 3 of 52
5.In the event of any default owing to my death, incapacity or any other reason for that
matter, I hereby authorize you to adjust and set off the entire amount or amount of default
as deemed
fit
by the Bank, from any of the accounts maintained by me with the Bank.
Signature
Full Name:……………………………....... Date of Birth ……………….……………..........
Residential Address: …………………………………………………….…….………..............
PIN: Tel. No:
Office Address: ……………………………………………………………………….
Place: Date:
FOR OFFICE USE ONLY
i)
ii)
Monthly Pension Payable (Net) :
Effective Rate of interest :
Rs……………………….
……………..% p.a. with
monthly rests.
iii)
a)
Pensioner
Eligible Amount (Maximum)
(a) As per age and No. of times or
(b) EMI/NMI (based on age and repayment period)
Rs. ………………
b)
Family Pensioners
a) As per age and No. of times or
b) EMI/NMI (based on age and repayment period)
Rs. ………………
iv)
Amount of Loan requested :
Rs. ………………
v)
Loan repayable in :
………no. of EMIs
vi)
Equated Monthly Installment :
Rs. ………………
Sanctioned a Demand Loan of Rs…………… (Rupees …………………………….) to
Shri/Smt……………………………to be repaid in …. EMIs of Rs. ………………. each,
recoverable from monthly pension payable in his/her account No……………….
A suitable note for recovering the amount of EMI beginning from the month of ………. has
already been taken in the relevant records.
Recommending Authority Sanctioning Authority
Page 4 of 52
Annexure: PL – II
IRREVOCABLE UNSTAMPED UNDERTAKING FROM PENSIONER
To,
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning Branch)
Dear Sir /Madam,
SBI PENSION LOAN TO PENSIONERS
IRREVOCABLE UNSTAMPED UNDERTAKING
PENSION ACCOUNT No………………………….. PPO No: ………………………… in the
name of Pensioner Shri…………………….
With reference to my application for sanction of loan under SBI PENSION LOAN/JAI
JAWAN PENSION/PSU Scheme, I hereby undertake
i). NOT to transfer/shift my Pension Account to any other Branch of SBI or to any other
Bank during the currency of my Pension Loan at your Branch.
ii). NOT to amend the mandate given for deduction of amount of monthly repayment
towards loan granted to me by your Branch.
Yours faithfully,
(Signature of the applicant)
Date:
Name:
Address:
…………………………
Page 5 of 52
Annexure: PL-III
ADVICE FOR NOT PERMITTING SHIFTING OF PENSION A/C
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
Madam/ Dear Sir,
SANCTION OF SBI PENSION LOAN TO PENSIONERS
ADVICE FOR NOT PERMITTING SHIFTING OF PENSION A/C
PENSION ACCOUNT No………………………….. PPO No: ………………………… in the
name of Pensioner Shri…………………….
We would like to advise that on the request of the abovementioned customer, Pension Loan
of Rs…………..under the abovementioned Pension Loan scheme of the Bank has been
sanctioned to Shri…………………….. The Standing Instruction (SI)/Electronic Clearing
System (ECS) mandate for monthly repayment (EMI- Equated Monthly Instalment) of
Rs……………….. towards the loan has been set up as under:
Debit Pension A/c: ……………………….. (maintained with our…………..Branch)
Pension Loan A/c: ……………………….. (maintained with our ………….Branch)
2. As per the Agreement between the Bank and CMPF, kindly note not to permit shifting of
Pension Account of the abovementioned pensioner to any other Bank/Branch of SBI during
the tenor of the said Pension Loan/till the said loan is fully repaid.
Yours faithfully,
Signature of the Officer/Branch Manager
Date:
To
The Pension Disbursing Officer,
…………………………
…………………………
Page 6 of 52
Annexure-A
STANDARD OPERATING PROCEDURE(SOP)
FOR SANCTION OF PENSION LOAN TOCMPF PENSIONERS
TO BE ADOPTED BY THE BRANCHES MAINTAINING PENSION ACCOUNTS
Name of the Scheme: SBI Pension Loan to Coal Mines Provident Fund (CMPF) Pensioners
A
Sourcing of Proposal
Sr.
No
Activity
Steps
1
Lead Generation
Direct lead (CMPF Pensioners directly visit the Branch for loan)
or sending pre-approved sanction letter to the CMPF pensioners
by the Home branch.
2
Pensioner
Identification
i)Ensure that fully KYC compliant Pension account is maintained
at the Branch and pension is regularly being credited in the
account
ii) Ensure that disbursement of Pension is being done centralized
by DHANBAD Branch.
iii) Ensure that the pensioner meets the eligibility criteria.
3
Meeting with
Pensioner
i)Meet the pensioner on the appointed day,
ii) Explain the sanction process and handover the check list of
documents required as per the scheme.
iii) Market insurance products such as PAI, Health insurance to
cover the risk of the Pensioners as a value added service
iii) The applicant should also be advised that a suitable Third
Party Guarantee would be required.
4
Documents
Collection
(refer Point # for
standard format)
i) Duly filled in Application-cum-Authority Letter(Format as per
Annexure: PL 16of Chapter – F of Part – 10 of e-MANUAL ON
LOANS AND ADVANCES).Please use the format by making
suitable changes.
ii) Copy of PPO issued by the CMPFO.
iii) ObtainKYC documents self-attested by the pensioner and the
guarantor for the loan.
iv)Undertaking from applicant regarding other deductions/
loans (Format as perAnnexure: CMPF I).
v) An irrevocable unstamped undertaking from the pensioner
that he/she will not amend his/her mandate with the CMPF for
change in pension payment bank/branch of SBI during the
currency of the loan(Format as perAnnexure: CMPF II).
5
Scrutiny and
verification of
KYC, Employment
details & Income
documents
Check whether :
i) ID proof/address proof (KYC)/ income documents are as per
check list.
ii) Check the age and regularity in payment of pension.
iii) Photocopies are self-attested by the applicant and signature
tallies with that on application.
Page 7 of 52
iv) Copies of documents verified with original under
authentication.
v)Obtain scanned certified copy of the PPO and latest life
certificate of the applicant from Dhanbad Branch to cross check
the genuineness of the PPO and other details to ascertain the age
and to avoid impersonation (No loan will be sanctioned unless
PPO submitted by the Pensioner is cross checked by the Branch
with the certified copy of PPO received from Dhanbad Branch)
6
Preliminary
Assessment on the
basis of Income
Proof
Check Net Monthly pension of the applicant and calculate the
maximum eligible loan amount as per the CMPF pension Loan
scheme and the EMI/NMP ratio after including any existing EMI.
Derive the maximum loan eligibility.
The net amount of pension is to be ascertained from transactions
in the account in which pension is being credited.
7
CIBIL/CIS Report
> CIC report/ s should be taken from LOS. It should be ensured
that correct data i.e. Name, PAN/AADHAR No, DOB, Telephone
number and address is punched.
Further Steps , if proposal is found to be primarily acceptable:
8
Pre-Sanction
Survey(PSS)
i)Ensure PSS by verification of Residence of the pensioner by
Bank Official or Verification Agency
ii)Verify whether the report is positive
iii)Cross check details of the documents submitted with the
contents of pre sanction report
B
Processing of Proposal in LOS
9.
Sourcing
Booking of New loan in LOS in CAS: Retail->Intray->CMPF
Pension Loan-> New Application.
Use Sourcing, Applicant and Scheme details screens and update
following details i.e. Branch Code, Referral Group, Referral Code,
Sourcing Official's Name and PF Number, Loan Amount, Scheme
Name,
10
Quick Data Entry-
QDE
Choose in CAS : Retail->Intray-CMPFO Pension Loan-> Quick
data entry
Enter applicant's details using following screens :
(i)Personal details of the Applicant :
All mandatory fields are to be filled. Non-mandatory fields,
which are relevant to the CMPF Pension Loan to be filled.
These fields are important for generation of correct score
under Risk Scoring Model.
(ii)Income & Liability Details :
Gross monthly income as well as Net monthly income after
deductions to be given.
Details of obligation in respect of existing loan is to be given
and box "Consider for obligation" is to be ticked, in case there
Page 8 of 52
is any existing loan. This is essential for generating EMI/NMI
ratio and establishing stability of income.
(iii)Document collection Details:
List of all the documents collected to be captured using
Documents Collection screen.
After preparation of list, details of each document /child
document are to be entered.
iv)Note Pad:
All relevant information relating to proposal which is not
captured in LOS should be given in Note Pad ie
1. Major observations in Pre sanction survey
2. Details of deviations taken
3. Observations in CIBIL/CIC report if any.
(vii)Change Stage :
Using Change Stage option proposal is sent to next stage in
the loan processing workflow.
(viii)De-dupe referral:
Choose in CAS : Retail->Intray->CMPF Pension Loan-> De-
dupe referral.
View and verify the details of the duplicate
applications/matched cases displayed.
Take decision on the basis of De-dupe result to Approve or Reject the loan application. If
Approved, proposal will move to next stage.
11
Generation of
CIBIL/CIC
report/s
i). Generate CIBIL report, if not already generated outside LOS.
ii). Verify PAN, Name, DOB and address appearing in Credit
Information Report.
iii). Delinquencies/settled/written off accounts to be dealt with as
per Bank's extant instructions.
12
Processing-Detail
Data Entry (DDE)
After detailed scrutiny of application & documents and
processing of the proposal, choose in CAS : Retail->Intray-
>CMPF Pension Loan-> Detail Data Entry.
Update details entered at QDE stage or enter/modify
demographic details in the under noted screens:
(i)Updating Demographic details:
Personal
Address
Work details
Income/liability Financial details
CIF details
Financial details
Current Assets
Page 9 of 52
Misc Information
(ii) Update other details using under noted screens:
Loan details
Note pad
Check list
MIS details
Document printing
Application History
Important points to be remembered as under:
(i) Repayment Schedule to be generated and print out of the
same to be taken. If printout is not taken the same will not be
available elsewhere.
(ii) RSM should be verified and if the score comes under
Indeterminate Range, explore credit enhancement or obtain
deviation from competent authority.
After reviewing the result of the scoring referral, take decision to
Approve or Reject the loan application. If Approved, proposal
will move to next stage.
Field Investigation Initiation(FII)
To initiate the investigation process go to-> LOS -> Retail-
>Intray-> CMPF Pension Loan-> Investigations Initiation
Name of the verification agency can be selected to
whom investigation assigned.
Field Investigation Verification(FIV)
For Investigation Verification process go to-> LOS ->
Retail->Intray-> CMPF Pension Loan-> Investigations
Verification
Enter Residence, Office and Business verification details
received.
Field Investigation Completion (FIC)
Go to-> LOS -> Retail->Intray->CMPF Pension Loan->
Investigation->Completion
Analyze the FI details and take decision.
View and Appraise FI result.
After reviewing the result of investigation, take decision to Approve or
Reject the loan application. If Approved, proposal will move to next
stage for Underwriting.
Page 10 of 52
13
Sanctioning-
Underwriting
Process work flow for underwriter is as under :
Review application details.
Review referral results.
Review Investigation results.
Review credit approval memorandum.
Review post sanction document.
Review deviations and risk mitigate risk.
Appraise loan application.
Forward the application to other user for further
verification or for sanction, if beyond the delegated
powers.
Stage reversal (if any error exists in data entry stage, it can
be referred back to the QDE/ DDE operator).
Approve or Reject the application.
If the Underwriter approves the loan, applicant is informed about the decision through system
generated SMS or over phone and details are transferred to next stage for Post Sanction
Documentation (PDOC), Opening of Loan Account and disbursement.
14
Post Sanction
Document (PDOC)
For updating Loan details and generation of list of documents,
Post Sanction Document screen in LOS will be used as under :
CAS menu: Retail->Intray-> CMPF Pension Loan -> Post
Sanction Document.
Following activities have to be completed :
1. From the drop down option: documents to be selected which
are required to be collected from applicant.
2.Loan details can be updated using loan detail screen
3. Entering instrument details. From drop down option
instrument is to be selected by which the applicant will pay the
instalments and details to be entered.
4. Enter documents execution details using Scheduling
Documents Execution Detail screen.
5. Documents submitted are to be verified in the presence of
applicant in pre-scheduled time and place. The documents that
pass this stage of verification are referred to as “executed
documents”.
15
(i)Account
Opening in LOS
i)After the loan application is processed successfully and has
passed the PDOC stage, the loan account to be opened in LOS and
updated in CBS:
Miscellaneous -> CIF/ Account Creation
ii) CIF creation is not required as CMPF Pension loans are
sanctioned to the existing customers having pension account with
us.
iii)Account Creation
Page 11 of 52
Additional Account Detail ( It is must to avoid CCDP errors)
The operating staff before processing of loan should confirm that
there is no existing Pension Loan account under his/her CIF
either at Home Branch or any other Branch.
(ii) Account
updation in CBS
Maker/Checker is required forupdation of Loan account
The official who has created account in LOS can refer the account
in CBS to another teller of same capacity.
The Teller to whom the account is referred should acknowledge
the account
16
Repayment Mode
To be repaid in 60 EMIs commencing after one month of the
disbursal of the loan, SI set-up for recovery of EMIs is mandatory
in CMPF Pension loans and hence, CBS will not allow
disbursement of loan unless SI is set-up. Ensure that date of SI
towards EMI to be set coinciding with the date of disbursement
of pension.
C
Execution of Documents and Disbursement
17
Documentation
List of major documents to be executed/obtained are as under:
Application-cum-Authority letter (Format as per
Annexure: PL -16 of Chapter – F of Part – 10of MANUAL
ON LOANS AND ADVANCES. Please use the format by
making suitable changes)
Arrangement Letter
DP Note to be executed by the pensioner in favour of the
guarantor and endorsed by guarantor in favour of the
Bank
DP Note Take Delivery Letter
Undertaking from Borrower regarding other
deduction/loans (Format as per Annexure: CMPF-I)
Check-list generated through LOS should be kept with the
document
An irrevocable unstamped undertaking from the
pensioner that he/she will not amend his/her mandate
with the CMPF for change in pension payment
bank/branch of SBI during the currency of the loan
(Format as per Annexure: CMPF-II)
Copy of the Letter to CMPF for Non-shifting of pension of
the loan during currency of the Pension Loan. (Format as
per Annexure: CMPF-III)
Copy of the letter sent to Dhanbad Branch for noting of in
their Master file (Format as per Annexure: CMPF-IV)
Confirmation of Noting in Master File received from
Dhanbad Branch(Format as per Annexure: CMPF-V)
Copy of the PPO certified by Dhanbad Branch
Latest copy of Life Certificate
18
Disbursement
Disbursement of loan should never be done in cash. It should be
transferred to the Pension (Deposit) account of the borrower.
Page 12 of 52
19
Processing fee
Processing fee will be recovered on the loan amount as per the
prescribed rate.
D
Post Sanction Activities
20
Sending letters to
CMPFO/Dhanbad
Branch
The Branch is required to advise to CMPF immediately after
sanctioning of loan so that CMPF will not allow shifting of
pension account to any other Bank during currency of the
Pension Lon(Format as per Annexure: CMPF-III)
Branch to immediately send a letter to Dhanbad Branch
requesting them for noting in their Master Data about
availment of pension loan and advise CMPF accordingly
(Format as per Annexure: CMPF-IV)
Similarly once the pension loan is liquidated and closed,
Branch to immediately send a request to Dhanbad Branch for
unmarking of noting in their Master File(Format as per
Annexure: CMPF-VII)
21
Post-sanction
Inspection
Post-sanction Inspection is required to be done within a week of
the accounts being classified as RG “3.
E
ACTIVITIES TO BE DONE AT DHANBAD BRANCH
22
i)Provide certified
copy of PPO
ii)Noting in Master
File
iii)Confirmation of
noting in Master
file
iv)Advice to
CMPFO
v)Cancellation of
noting in Master
File
vi)Confirmation of
cancellation of
Noting to
Disbursing Branch
vii)Advice of
closure of loan to
CMPFO
i). To provide certified copy of the PPO and latest life certificate
immediately on request of the account maintaining branch.
ii). Immediate noting on the Mater file about availment of
pension loan once loan is sanctioned and advised by the Loan
disbursing Branch.
iii). To send confirmation of noting in Master File to Loan
Disbursing Branch (Format as per Annexure: CMPF-V).
iv). Advising CMPF authorities of availment/disbursement & for
not shifting of pension account to any other Bank /branch of
SBI during the currency of the Pension Loan (Format as per
Annexure: CMPF-VI).
v). To unmark the noting in Master file after Loan Disbursing
Branch advises about liquidation and closure of the pension
loan.
vi). To confirm cancellation of Noting to the loan
Sanctioning/Disbursing Branch by way of letter (Format as
per Annexure: CMPF-VIII).
vii). To adviseCMPFO about liquidation/closure of loan
account by way of letter (Format as per Annexure: CMPF-IX).
Page 13 of 52
F
Specimen/Format of Letters & Undertaking etc(Annexed hereto)
To be sent
by
To be Sent
to
Purpose in Brief
Annexure
Index No
i
Pensioner
LSB*
Undertaking - Other Deductions/Loans etc.
CMPF I
ii
Pensioner
LSB*
Irrevocable Unstamped Undertaking
CMPF II
iii
LSB*
CMPFO^
Advice For Not Permitting Shifting of Pension
A/C
CMPF III
iv
LSB*
Dhanbad Br
Request For Marking/Noting in Master File
CMPF IV
v
Dhanbad Br
LSB*
Confirmation of Noting In Master File
CMPF V
vi
Dhanbad Br
CMPFO^
Advice For Not Permitting Shifting of Pension
A/C
CMPF VI
vii
LSB*
Dhanbad Br
Request For Un-Marking/Cancellation of
Noting in Master File
CMPF VII
viii
Dhanbad Br
LSB*
Confirmation of Successful Un-
Marking/Cancellation Of Noting in Master File
CMPF VIII
ix
Dhanbad Br
CMPFO^
Advice of Liquidation/Closure of Loan
CMPF IX
*LSB: Loan Sanctioning Branch.
^CMPFO: Coal Mines Provident Fund Officer
Page 14 of 52
Annexure:CMPF – I
UNDERTAKING - OTHER DEDUCTIONS/LOANS AVAILED OF BY THE PENSIONER
To,
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning Branch)
Dear Sir,
SBI PENSION LOAN TO CMPF PENSIONERS
UNDERTAKING - OTHER DEDUCTIONS/LOANS AVAILED OF BY ME
PENSION ACCOUNT No………………………….. PPO No: ………………………… in the
name of CMPF Pensioner Shri…………………….
With reference to my application for sanction of loan under your SBI PENSION LOAN TO
CMPF PENSIONERS Scheme, my monthly statement of deductions towards all loans
availed of by me, as on date, are as under:
Sr. No.
Details of Loan
Loan availed
from(Bank/Financial Institute)
Amount deducted
towards loan a/c (Rs.)
TOTAL
Rs.
2. I further advise that I have guaranteed the loan(s) as per details hereunder:
Sr. No.
Name of the
Borrower
Loan granted by(Bank/Financial
Institute)
Amount of loan (Rs.)
TOTAL
Rs.
Page 15 of 52
3. I confirm that my total liability towards repayment of all loans is restricted to what is
mentioned in the above table. I further undertake to intimate/advise you if I apply for any
other loan(s) and/or submit guarantee for the loan availed by any other person with any
Bank/Financial Institution, in future.
Yours faithfully,
(Signature of the applicant)
Date:
Name:
Address:
…………………………
Page 16 of 52
Annexure:CMPF – II
IRREVOCABLE UNSTAMPED UNDERTAKING
To,
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning Branch)
Dear Sir /Madam,
SBI PENSION LOAN TO CMPF PENSIONERS
IRREVOCABLE UNSTAMPED UNDERTAKING
PENSION ACCOUNT No………………………….. PPO No: ………………………… in the
name of CMPF Pensioner Shri…………………….
With reference tomy application for sanction of loan under SBI PENSION LOAN TO CMPF
PENSIONERS Scheme, I hereby undertake
iii). NOT to transfer/shift my Pension Account to any other Branch of SBI or to any other
Bank during the currency of my Pension Loan at your Branch.
iv). NOT to amend the mandate given for deduction of amount of monthly repayment
towards loan granted to me by your Branch.
Yours faithfully,
(Signature of the applicant)
Date:
Name:
Address:
…………………………
Page 17 of 52
Annexure:CMPF – III
ADVICE FOR NOT PERMITTING SHIFTING OF PENSION A/C
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning Branch)
Madam/ Dear Sir,
SANCTION OF SBI PENSION LOAN TO CMPF PENSIONERS
ADVICE FOR NOT PERMITTING SHIFTING OF PENSION A/C
PENSION ACCOUNT No………………………….. PPO No: ………………………… in the
name of CMPF Pensioner Shri…………………….
We would like to advise that on the request of the abovementioned customer, Pension Loan
of Rs…………..under the abovementioned Pension Loan scheme of the Bank has been
sanctioned to Shri…………………….. The Standing Instruction (SI)/Electronic Clearing
System (ECS) mandate for monthly repayment (EMI- Equated Monthly Instalment) of
Rs……………….. towards the loan has been set up in CBS as under:
Debit Pension A/c: ……………………….. (maintained with our Bank)
Pension Loan A/c: ……………………….. (maintained with our Bank)
2. As per the Agreement between the Bank and CMPFO, kindly note not to permit shifting
of Pension Account of the abovementioned pensioner to any other Bank/Branch of SBI
during the tenor of the said Pension Loan/till the said loan is fully repaid.
Yours faithfully,
Signature of the Officer/Branch Manager
(Loan Sanctioning Branch)
Date:
To
The Pension Disbursing Officer,
…………………………
…………………………
CMPF
Page 18 of 52
Annexure: CMPF – IV
REQUEST FOR MARKING/NOTING IN MASTER FILE
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning
Branch)
Madam/ Dear Sir,
SANCTION OF SBI PENSION LOAN TO CMPF PENSIONERS
REQUEST FOR MARKING/NOTING IN MASTER FILE
CIF No ………………………… PENSION ACCOUNT No………………………….. PPO
No: …………………. in the name of CMPF Pensioner Shri…………………….
We would like to advise that on the request of the abovementioned customer, Pension Loan
of Rs………….. under the abovementioned Pension Loan scheme of the Bank has been
sanctioned to Shri…………………….. The Standing Instruction (SI)/Electronic Clearing
System (ECS) mandate for monthly repayment (EMI- Equated Monthly Instalment) of
Rs……………….. towards the loan has been set up in CBS as under:
Debit Pension A/c: ……………………….. (maintained with our Bank)
Pension Loan A/c: ……………………….. (maintained with our Bank)
2. In terms of the provisions contained in the said Pension Loan scheme, please arrange for
NOTING of sanction of loan to the Pensioner in the Master File maintained at your end and
confirm to us in the format (specimen as per Annexure:CMPF V of SOP of the scheme).
3. Please note that the disbursement of loan will be effected only on receipt of your
confirmation.
4. Please treat this as urgent.
Yours faithfully,
Signature of the Officer/Branch Manager
(Loan Sanctioning Branch)
Date:
To
The Branch Manager,
State Bank of India,
…………………………
…………………………
Dhanbad Branch
Page 19 of 52
Annexure:CMPF V
CONFIRMATION OF NOTING IN MASTERFILE
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
Dhanbad Branch
Madam/ Dear Sir,
SANCTION OF SBI PENSION LOAN TO CMPF PENSIONERS
CONFIRMATION OF NOTING IN MASTER FILE
CIF No ………………………… PENSION ACCOUNT No………………………….. PPO
No: …………………. in the name of CMPF Pensioner Shri…………………….
We refer to your letter dated ……………………….. and confirm having taken a suitable
NOTE in our master-file about sanction of loan under “SBI Pension Loan To CMPF
Pensioners” scheme of our bank to the abovementioned Pensioner.
2. We advise that the said NOTING will be cancelled only on receipt of your advices as to
the closure of the said loan A/c.
Yours faithfully,
Signature of the Officer/Branch Manager
Dhanbad Branch
Date:
To
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning
Branch)
Page 20 of 52
Annexure:CMPF VI
ADVICE FOR NOT PERMITTING SHIFTING OF PENSION A/C
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
Dhanbad Branch
Madam/ Dear Sir,
SANCTION OF SBI PENSION LOAN TO CMPF PENSIONERS
ADVICE FOR NOT PERMITTING SHIFTING OF PENSION A/C
PENSION ACCOUNT No………………………….. PPO No: ………………………… in the
name of CMPF Pensioner Shri…………………….
We would like to advise that on the request of the abovementioned customer, Pension Loan
of Rs…………..under the abovementioned Pension Loan scheme of the Bank has been
sanctioned to Shri…………………….. The Standing Instruction (SI)/Electronic Clearing
System (ECS) mandate for monthly repayment (EMI- Equated Monthly Instalment) of
Rs……………….. towards the loan has been set up as under:
Debit Pension A/c: ……………………….. (maintained with our…………..Branch)
Pension Loan A/c: ……………………….. (maintained with our ………….Branch)
2. As per the Agreement between the Bank and CMPF, kindly note not to permit shifting of
Pension Account of the abovementioned pensioner to any other Bank/Branch of SBI during
the tenor of the said Pension Loan/till the said loan is fully repaid.
Yours faithfully,
Signature of the Officer/Branch Manager
Dhanbad Branch
Date:
To
The Pension Disbursing Officer,
…………………………
…………………………
CMPF
Page 21 of 52
Annexure:CMPF VII
REQUEST FOR UN-MARKING/ CONCELLATION OF NOTING IN MASTER FILE
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning
Branch)
Madam/ Dear Sir,
SBI PENSION LOAN TO CMPF PENSIONERS
REQUEST FOR UN-MARKING/ CANCELLATION OF NOTING IN MASTER FILE
CIF No ………………………… PENSION ACCOUNT No………………………….. PPO
No: ………………………… in the name of CMPF Pensioner Shri…………………….
We would like advise you that loan A/c No ……………………………… of the
abovementioned Pensioner has been closed on ………………(date).
2. Please therefore arrange to unmark/cancel the NOTING made in this regard and confirm
to us.
Yours faithfully,
Signature of the Officer/Branch Manager
(Loan Sanctioning Branch)
Date:
To
The Branch Manager,
State Bank of India,
…………………………
…………………………
Dhanbad Branch
Page 22 of 52
Annexure:CMPF VIII
CONFIRMATION OF UN-MARKING/CANCELLATION OF NOTING IN MASTER
FILE
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
Dhanbad Branch
Madam/ Dear Sir,
SBI PENSION LOAN TO CMPF PENSIONERS
CONFIRMATION OF UN-MARKING/CANCELLATION OF NOTING IN MASTER
FILE
CIF No ………………………… PENSION ACCOUNT No………………………….. PPO
No: ………………………… in the name of CMPF Pensioner Shri…………………….
We refer to your letter dated ……………………….. and confirm having
unmarked/cancelled the NOTING in our masterfile on account of the closure of Pension
Loan of the abovementioned Pensioner.
Yours faithfully,
Signature of the Officer/Branch Manager
Dhanbad Branch
Date:
To
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning
Branch)
23 | P a g e
Annexure:CMPF IX
From
The Branch Manager,
State Bank of India,
…………………………
…………………………
Dhanbad Branch
Madam/ Dear Sir,
SBI PENSION LOAN TO CMPF PENSIONERS
ADIVSE OF LIQUIDATION/CLOSURE OF LOAN
PENSION ACCOUNT No………………………….. PPO No: …………………. in the
name of CMPF Pensioner Shri…………………….
We would like to advise you that loan A/c No ……………………………… of the
abovementioned Pensioner has been closed on ………………(date).
Yours faithfully,
Signature of the Officer/Branch Manager
Dhanbad Branch
Date:
To
The Pension Disbursing Officer,
…………………………
…………………………
CMPF
24 | P a g e
Dear Pensioner,
That dream holiday you’ve been fondly hoping or the present you want to gift
your grandchildren or any other wish; now live out your every wish even if you
have retired!!
Apply for SBI Pension Loans with lower interest rate^ and get an instant
disbursement of the same
Special Benefits for you
For further details approach your nearest SBI Branch or log on to www.sbi.co.in
With Best Wishes,
*Interest Rates are subject to change from time to time;
11.70% Attractive and low Interest Rates of 11.70%*
Up to 60 months Flexible repayment of up to 60 months
Loan up to Rs 14 lacs Get Loan up to Rs 14 lacs
0.51% Processing Fees
Annexure I - A
25 | P a g e
Dear Family Pensioner,
That dream holiday you’ve been fondly hoping or the present you want to gift
your grandchildren or any other wish; now live out your every wish even if you
have retired!!
Apply for SBI Pension Loans with lower interest rate^ and get an instant
disbursement of the same
Special Benefits for you
For further details approach your nearest SBI Branch or log on to www.sbi.co.in
With Best Wishes,
*Interest Rates are subject to change from time to time;
11.70% Attractive and low Interest Rates of 11.70%*
Up to 60 months Flexible repayment of up to 60 months
Loan up to Rs 5 lacs Get Loan up to Rs 5 lacs
0.51% Processing Fees
Annexure I - B
26 | P a g e
Dear Pensioner,
It gives us immense pleasure to advise that you have qualified for a Top-up SBI
Pension Loan to take care of any financial requirement of yours!!
Apply for SBI Pension Loans with lower interest rate^ and get an instant
disbursement of the same
Special Benefits for you
For further details approach your nearest SBI Branch or log on to www.sbi.co.in
With Best Wishes,
*Interest Rates are subject to change from time to time;
11.70% Attractive and low Interest Rates of 11.70%*
Up to 60 months Flexible repayment of up to 60 months
Loan up to Rs 14 lacs Get Loan up to Rs 14 lacs
0.51% Processing Fees
Annexure II - A
27 | P a g e
Dear Family Pensioner,
It gives us immense pleasure to advise that you have qualified for a Top-up SBI
Pension Loan to take care of any financial requirement of yours!!
Apply for SBI Pension Loans with lower interest rate^ and get an instant
disbursement of the same
Special Benefits for you
For further details approach your nearest SBI Branch or log on to www.sbi.co.in
With Best Wishes,
*Interest Rates are subject to change from time to time;
11.70% Attractive and low Interest Rates of 11.70%*
Up to 60 months Flexible repayment of up to 60 months
Loan up to Rs 5 lacs Get Loan up to Rs 5 lacs
0.51% Processing Fees
Annexure II - B
28 | P a g e
Annexure: PL – I
UNDERTAKING - OTHER DEDUCTIONS/LOANS AVAILED OF BY THE PENSIONER
To,
The Branch Manager,
State Bank of India,
…………………………
…………………………
(Address of the Loan Sanctioning Branch)
Dear Sir,
SBI PENSION LOAN TO PENSIONERS
UNDERTAKING - OTHER DEDUCTIONS/LOANS AVAILED OF BY ME
PENSION ACCOUNT No………………………….. PPO No: …………………………
in the name of Pensioner Shri…………………….
With reference to my application for sanction of loan under your SBI PENSION LOAN
TO PENSIONERS Scheme, my monthly statement of deductions towards all loans
availed of by me, as on date, are as under:
Sr. No.
Details of Loan
Loan availed
from(Bank/Financial Institute)
Amount deducted
towards loan a/c (Rs.)
TOTAL
Rs.
2. I further advise that I have guaranteed the loan(s) as per details hereunder:
Sr. No.
Name of the
Borrower
Loan granted by(Bank/Financial
Institute)
Amount of loan (Rs.)
TOTAL
Rs.
3. I confirm that my total liability towards repayment of all loans is restricted to what
is mentioned in the above table. I further undertake to intimate/advise you if I apply
for any other loan(s) and/or submit guarantee for the loan availed by any other person
with any Bank/Financial Institution, in future.
Yours faithfully,
(Signature of the applicant)
Date:
Name & Address: ………………………….
29 | P a g e
(PROJECT LOTUS INITIATIVE)
STANDARD OPERATING PROCEDURE
PRE-APPROVED PENSION LOAN
30 | P a g e
Table of Contents
1
Purpose ----------------------------------------------------------------------------------
3
1.1
Background ------------------------------------------------------------------------
3
1.2
Scope and Audience ------------------------------------------------------------
3
2
Prerequisites --------------------------------------------------------------------------
4
3
Procedure
3.1
Process Flows ---------------------------------------------------------------------
5
3.2
Important Points to Remember -----------------------------------------------
14
4
Troubleshooting & Complaint Handling -------------------------------------
17
5
Measurement of Customer Satisfaction -------------------------------------
17
6
FAQs -------------------------------------------------------------------------------------
17
7
Contact Numbers --------------------------------------------------------------------
20
8
Acronyms ------------------------------------------------------------------------------
20
Annexure A-----------------------------------------------------------------------------
21
31 | P a g e
STANDARD OPERATING PROCEDURE FOR THE PROCESS OF
PRE-APPROVED PERSONAL LOAN ON YONO APP/PORTAL
1. Purpose
The purpose of this document is to provide a detailed Standard Operating Procedure
(SOP) for the process of availing Pre-Approved Personal Loan by the pre-selected
customers of the Bank YONO (You Only Need One) Mobile App/ Web Portal.
1.1. Background
A new digitized unsecured personal loan product ‘Pre Approved Personal Loan’ was
rolled out on YONO platform on 24.10.2017 to provide our existing customers an
instant personal loan for their urgent needs.
The Product, in view of its obvious advantages, has received a very good
response from the Customers as well as from the Bank’s operating
functionaries. Bank has booked a business of over Rs. 575 crores (over 70,000
Customers) in PAPL.
In view of the encouraging response for the Bank’s maiden digital product, it
has now been decided to offer Xpress Credit and Pension Loans also in the pre-
approved format. Pre-Approved Xpress Credit(PAXC) up to Rs. 5,00,000/-Pre-
Approved Pension Loans(PAPNL) up to Rs. 2,50,000/- and Xpress Credit Insta-top up
to Rs. 3,00,000 (Presently available only on INB) are being brought under the umbrella
of the existing Pre-Approved Personal Loans on YONO.
YONO is available as a mobile app for Android (Google Play Store) and iOS (Apple
App store). The web version is accessible at https://yonosbi.com
1.2. Scope & Audience
The intended audience of this SOP will be all officials from the Business, Operations
who will be related to the process of Pre-Approved Personal Loan available on YONO
mobile App/Web Portal.
32 | P a g e
2. Prerequisites
A customer
Pre-selected
A registered
shall be able
SBI customer
YONO
to avail the
with a loan
App/Portal
loan if he/she
offer
User
is:
33 | P a g e
3. PROCEDURE
3.1 Process Flow:
Eligibility
PAPL
PAXC
CSP and Non
CSP
CSP
customers
customers
Insta top up
Pension loans
eligible Xpress
Eligible
Credit
Pensioners
Borrowers
Eligible
Customers
Selection Criteria
Pre-approved Personal Loan(PAPL)
Pre-approved Xpress Credit(PAXC)
Pre-approved Pension loan(PAPNL)
Xpress Credit Insta-top up
■ In case, a customer is eligible for more than one product out of the above 4
products, he/she will be offered the product with the highest eligibility as PAPL
■ If customer's eligibility under more than one products is same, he will be
offered the product with lower interest rate.
34 | P a g e
35 | P a g e
36 | P a g e
Loan Application and Disbursement Process for
PAPL through YONO App/ Portal
1.8
■ To avail the loan, the customer logs
into YONO App/ Portal.
■ If the customer has become aware of
the offer via. SMS & E-mail, then on
login to the app, the customer lands
on the home page, whereby he/she
needs to select the PANPL option to
proceed further.
■ If the customer has become aware of
the offer through in-app notifications
then the customer is directly taken to
the loan offer screen in the app.
1.9
■ Customer may modify the loan
amount (in multiples of Rs. 1000/-
) and tenure (in months) within the
maximum loan offer.
37 | P a g e
1.10
Customer selects the Standing Instruction
date for EMI payment.
1.11
Customer reads the Terms and
Conditions of the loan and clicks the
check box in token of his having read,
understood & accepted the same.
Customer will be able to click the check
box only after he completely scrolls
down the T&C screen.
38 | P a g e
1.12
Customer may review the loan details
selected and modify, if needed.
1.13
The customer authenticates the
transaction through OTP received on
his/her mobile number registered in CBS.
39 | P a g e
1.14
■ At the Back-end, Loan A/c is created in CBS
and disbursed into the customer’s Savings
Bank Account.
■ The loan account will be parked in the home
branch (which maintain the Savings account
eligible for PANPL).
■ The customer receives intimation via SMS
and e-mail.
40 | P a g e
1.15
■ If the loan amount or tenure is out of
acceptable limit then an error message
“Please increase the loan duration or reduce
the loan amount” is shown to user
1.16
If another product (any
Personal loans under PAPL umbrella
or other digital Personal Segment loan
which is not permitted to be availed
concurrently) is availed by user, Cross
product error messages will be shown
41 | P a g e
1.17
■ This error message is displayed if one or more existing loan account/s
is/are in stress
42 | P a g e
3.2 Important Points to remember:
Process:
■ This will be a fully digitized process. There will be no paper
application
PANPL Loan
Loan Application Timings in App/ Portal:
process based on
the time of loan
Regular
• From 8:00am till CBS Available
application
Mode
Night Mode • CBS Unavailable till 8:00am
For the PANPL Loans applied during the Night mode, the customer request and
the details will be stored. On screen notification on successful submission during
night mode will be as per sample below
"We have received your request. Your account number xxxxxxxxx2897 will be
credited with Rs. 45,000/- by tomorrow."
Next day after 8:00 am, once CBS is up, the YONO system will forward the stored
request to complete the Loan process till disbursement.
After the store and forward process is completed by the YONO system, Customer will
be sent SMS/Email notifying success or failure.
If Success: The customer’s SB account will be credited and he/she will be notified
via SMS.
"Congratulations! Your account number
xxxxxxx8979 will be credited shortly with INR 45,000/-"
If Failure:
"Sorry we are unable to process your request, please reach out to our contact
centre for further assistance."
43 | P a g e
Documentation
■ The acceptance of Terms & Conditions of loan, as listed
on the App/ Portal screen will be obtained digitally, by
ticking the check box by the customer.
■ No physical documents will be exchanged between the
Customer & the Bank. (T & C as detailed in Annexure A)
Repayment SI
Standing Instruction (SI) will be set in CBS, digitally, on
Customer’s selecting a date of his choice. Debit Account will
(fully digitised
always be the Savings Account on which customer’s PANPL
activity)
eligibility has been determined.
SI date selection during Regular and Night Modes.
During Regular Mode (8:00am till CBS Available) –
SI Payment date choice in the calendar available to customer
would be:
From Date
• equals to Next day of Loan
disbursement
End date
• equals to Loan disbursement day of
the next month
If the current disbursement day in the next month goes beyond
last day of the month then the last day of the month should be
considered e.g. Loan disbursement day is 31-Jan-2017 then
the calendar should be enabled for 1-Feb-2017 to 28-Feb-
2017.
During Night Mode (CBS unavailable till 8:00am) –
SI Payment date choice in the calendar available to customer would be:
From Date
• equals to Next day of Loan
disbursement
End date
• equals to Loan disbursement day of
the next month
If the current disbursement day in the next month goes beyond last day of the month then
the last day of the month should be considered e.g. Loan disbursement date-time is 2-
Feb-2019, 8:15pm, then the calendar should be enabled for 4-Feb-2019 to 4-March-
2019. Also if the disbursement date-time is 3-Feb-
44 | P a g e
2019, 12:15am, then the calendar should be enabled for 4-Feb-
2019 to 4-March-2019.
Disbursement
■ On acceptance of the Terms and Conditions and
successful OTP authentication, the Loan account will be
(This will be a fully
created digitally in CBS and loan will be disbursed to the
Digitised Activity
Customer’s Savings Account.
without intervention
■
The loan account will be parked in the home branch (which
on part of the Bank
maintain the Savings account, Salary Savings Account in
staff)
case of CSP Customer and to the Savings Account which
Account
was the basis of for pre-selection, in case of a non-CSP
Maintenance
Customer).
■ All post
disbursement
activities &
follow up
for
irregularities in loan account will be done by the Home
Branch as in case of existing loan accounts.
Processing Fees
■ As decided by the appropriate authority from time to time.
Presently, the applicable processing fee is Nil for PAPL,
(will be debited
Rs. 1000 (plus GST) for PAPNL,
digitally)
Other charges /
■ If the irregularity exceeds EMI for a period of one month,
then charges for late payment of EMI (as applicable)
and
Penal Interest
penal interest @ 2% p.m. (over and above the applicable
(CBS
interest rate) will be charged on the overdue amount for
functionality)
the period of default.
■
If part instalment or part EMI remains overdue then no
penal interest will be levied
Closure / Pre-
■
Loan Account will be closed/ pre-closed by the Home
Branch
after recovering
residual
dues from
the
closure of Account
Customer’s Savings/ Current Account.
(Home Branch)
■ There will not be any Pre-Payment charges.
Number of PAPL
■
Only one Pre-approved Loan can be availed at any point
availed
of time.
■ Multiple Pre-approved Loans are not permitted even if a
customer has availed lower loan amount than their
eligibility/loan offered.
■
In case the loan account is closed before any of the
quarter end, a customer will not be eligible for taking a new
loan till the start of next calendar quarter, which will also
be subject to their eligibility for Pre-approved Loan facility
in the subsequent quarter(s).
45 | P a g e
Validity of Offer
■ The offer to the pre-selected customers will be valid till the
end of Calendar Quarter in which they are offered the loan.
■ The list of Accounts pre-selected for this offer will be
dynamic and a new list will be prepared on quarterly basis
based on the eligibility criteria as stated above. The new
list will be updated at the back end every Calendar quarter
so that all ineligible account holders, who may be
previously eligible, are removed from the list.
4. Troubleshooting & Complaints Handling
■ Complaints pertaining to PAPL can be lodged by a customer through YONO App/
web Portal or any other channel. New listings pertaining to the PAPL complaint scenarios
have also been added under the existing “YONO” category in CMS.
■ The PAPL related complaints, other than technical, will be handled by the
Business Product Team and may be escalated to DGM (e2e). The process has been
detailed in the SOP for Complaints Management under YONO App/ Portal. Drop an
email to [email protected] for resolution.
5. Measurement of Customer Satisfaction
■ Every customer on successfully availing a PAPL will be asked to give feedback
on their experience. The feedback will be obtained through in-App CSAT metric
asking the customer to rate on a scale of 1-5. If the customer gives a score of 3 &
below, they will be asked to give further suggestions for improvement. The process
has been detailed in the SOP for Measurement of Customer Satisfaction on the use
of YONO App/ Portal.
■ Every customer will be given 5 loyalty points on giving feedback.
6. FAQs for customers on PAPL
Q1) What is PAPL?
A) PAPL is a Pre-
urgent financial
Approved Personal Loan specially designed for meeting your
requirements. It is a hassle free loan made available instantly.
Q2) For what purposes can I avail this loan?
A) It is a general purpose loan for meeting any legitimate personal needs other
than speculative activities.
Q3) Who is eligible for PAPL?
A) Salary Account holders with a certain minimum stipulated salary and Non Salary
Account holders with a certain stipulated minimum balance, Pensioners with a certain
minimum stipulated Pension, Existing Xpress Credit Borrowers
46 | P a g e
having satisfactory run account for last one year with minimum required outstanding
are eligible for PAPL.
Q4) How do I know that I am eligible for PAPL?
A) The eligible customers are informed of their loan eligibility through SMS/e-
mail/in-App notifications & in the offer section of Internet Banking.
Q5) What is the minimum & maximum amount offered under PAPL?
A) The minimum & maximum amount offered under PAPL comprising
below mentioned products will be Rs. 25,000/- & Rs. 5,00,000/- respectively.
Maximum loan falling under these category subject to product eligibility are:
1. Pre-Approved personal loan under Pre approved personal loan (PAPL)
upto Rs 2 lakhs.
2. Pre-Approved Xpress Credit to a maximum of Rs. 5 lakhs with no existing
Xpress Credit account.
3. Xpress Credit Insta-top up upto Rs. 3 lakhs for existing Xpress credit
borrowers.
4. Pre-Approved Pension Loans upto Rs. 2.5 lakhs for Pre-Approved Pension
Loans. .
■ In case, you are eligible for two products, you will be shown the offer with
only the higher eligibility under PAPL.
■ If your eligible amount under two products is same, you will be offered lower
interest rate among the products.
■ You can reduce Maximum loan amount to your choice in app/portal during
loan application.
Q6) What if I avail PAPL and still I need a higher amount of loan?
A) You may approach your branch for assistance in such cases.
Q7) When I am eligible for two products, How can I avail both the products in YONO?
A) In case, you are eligible for two products, you will be shown the offer with only
one product with the higher of the two eligibility amount under PAPL.
Q8) What is the repayment period?
A) The maximum repayment period ranging from 12 months to 72 months
depending on the product eligibility is displayed. You can reduce Maximum repayment
period to your choice in app/portal at the time of applying for.
Q9) What is the interest rate?
A) Interest rate will be fixed to 1 year/2 year MCLR + spread (Spread varies
from 335 to 560 basis points over 1year/2 year MCLR effective on the date of
loan), depending on product eligibility.
47 | P a g e
For e.g. if the MCLR is 8.5%, effective interest rate for PAPL over 335 basis points of
MCLR would be 11.40% p.a. Rate of interest applicable on the date of availing loan
will be fixed for the entire tenure.
Q10) Is there any Processing fee?
A) Depending upon the product eligibility processing fee may range from Nil to
maximum Rs 2000/- (plus GST).
Q11) Are there any other charges?
A) There are no charges at present.
Q12) Do I need to provide any documents?
A) No documents are required to be provided.
Q13) Do I have to visit the Branch for applying the loan?
A) No. For your convenience, this loan is made available to you through
App/Portal.
Q14) Do I need to visit any Branch for Loan agreement?
A) There is no need to visit any Branch for documentation. Your digital acceptance
to the terms & conditions coupled with OTP confirmation will only be required.
Q15) When will I get the loan amount deposited in my account?
A) The loan amount will be deposited in your Savings Account within a few
seconds of your accepting the terms & conditions & confirming the same
through OTP.
Q16) How will I repay the loan?
A) An automatic standing Instruction will be set up on a day selected by you, for
transfer of EMI from your Savings Account to Loan Account.
Q17) Will my loan account be closed automatically after payment of all EMIs?
A) No. For the final closure of Account you will have to get in touch with your
Home Branch.
Q18) Can I pre-close my account?
A) Yes. The loan account can be pre-closed. You have to contact the Home
Branch for the purpose.
Q19) Is there any pre-payment penalty?
A) There is no pre-payment penalty charged for pre-closure of the loan account
at present.
48 | P a g e
Q20) Whom should I contact in case of any queries?
A) You may contact SBI Contact Centre 24*7 on 1800 111 101 (Yono Toll Free), for
assistance.
B) Drop an email to [email protected]
C) During the banking hours, you may also contact your Home Branch (where Salary
account / Savings account is maintained).
7. Contact Numbers
In case of any difficulty, one may contact the Bank’s Contact Centre at 1800 111 101
(YONO Toll Free), for assistance.
8. Acronyms
SOP
Standard Operating Procedure
PAPL
Pre-Approved Personal Loan
SI
Standing Instruction
CMS
Complaints Management System
OD
Overdraft
CSP
Corporate Salary Package
EMI
Equated Monthly Instalment
OTP
One Time Password
T&C
Terms & Conditions
SB
Savings Bank A/c
49 | P a g e
These Terms & Conditions govern the Pre-Approved Pension Loan availed / to be
availed by you, the Borrower / Customer:
■ The Loan can be availed of and loan account created only through the customer’s
Internet Banking Account.
■ Interest on the loan will be charged at <Rate of Interest> (2 Yr MCLR+ Spread) with no
reset clause on daily reducing balance at monthly rest. The rate of interest will be valid for
the entire tenor of the loan.
■ A standing instruction equivalent to Rs <EMI> will be set up on <Date> of every month
on the salary account with the Bank upon availing of this loan as per the date decided by
you.
■ At any point of time, only one “Pre Approved Pension” is allowed.
■ The Term Loan facility will be permitted to operate on a reducing drawing power
arrangement on EMI basis.
■ Loan shall be repaid in <Repayment Period> months.
■ The loan is to be repaid in Equated Monthly Instalments. The number of equated
monthly instalments may increase/vary if the entire loan with interest, cost, charges and
expenses is not repaid by/with the stipulated number of equated monthly instalments. The
equated monthly instalments will have to be paid till the entire loan with interest is fully
repaid. The first instalment commences from the month following the month of
disbursement of loan.
■ A flat processing fee of Rs 1000 plus GST will be levied upon availing of this loan.
■ The bank shall not be liable for any unauthorised access to the Digital Platform through the
use of password / MPIN of the customer / borrower and that the credit of the loan amount to
the account of the customer / borrower would be sufficient for the Bank to construe that the
customer / borrower has applied for the said loan through the Internet Banking Account or
Mobile Banking Account and has been the beneficiary of the said loan amount sanctioned and
credited to the account of the customer / borrower.
■ In the event of default in payment of any instalment or any irregularity in the loan
account, penal interest at the rate of 2% p.m. over the stipulated interest rate with monthly
rests will be charged for the irregular amount and overdue period.
■ In the event of Borrower failing to repay any/ 2 or more instalment(s) at any point of
time, the Bank may send written reminders or make tele call/ SMS or depute an official to
meet Borrower personally, all the incidental charges appurtenant thereto such as postage,
telephone/ SMS charges, transportation charges, on actual would be recovered from
Borrower.
If:
– the borrower fails to pay any amount under this agreement on or before the due date
or commits breach of any of the terms, covenants, or conditions contained in this
agreement; or
– it is found that the borrower has made any misrepresentation to the bank; or
Page | 50
– there exists any circumstances which in the opinion of the bank prejudicially affects or
may affect the bank’s interest or the borrower’s ability to repay the loan; or
– the borrower commits any default under any other agreement with the bank; the Bank,
without prejudice to its other rights, shall be entitled at its option to demand immediate
repayment of the outstanding amount of the loan, interest, additional interest, fees, costs,
charges, expenses, stamp duty and all other sums whatsoever payable by the borrower to
the bank under this agreement and/ or in connection with the loan (hereinafter collectively
referred to as ‘the borrower’s outstandings’) and the borrower shall pay the same to the
bank forthwith.
■ Notwithstanding anything contained elsewhere in this agreement, the continuation of the
loan shall be at the sole and absolute discretion of the bank and the borrower’s outstandings
shall be payable by the borrower to the bank on demand. The bank may at any time in its
sole discretion and without assigning any reason call upon the borrower to pay the borrower’s
outstandings and thereupon the borrower shall pay the whole of the borrower’s outstandings
to the bank without any delay or demur.
■ It is a precondition of the loan advances given to the Borrower by the bank, that in case
of default in repayment of the loan / advances or in the repayment of the interest thereon or
any of the agreed instalment of the loan on due date/s or in maintaining the outstanding
amount within the drawing power at any point of time, the bank and/ or the Reserve Bank of
India will have an unqualified right to disclose or publish his/her name(s) as defaulter in such
manner and through such medium as the bank or Reserve Bank of India their absolute
discretion may think fit and the borrower will not claim any right of secrecy to his/her account.
■ The Terms and Conditions mentioned herein form the contract between the Borrower
availing the Pre-Approved Pension facility using the Internet Banking services or Mobile
Banking Services and the Bank. By ticking the checkbox, the Borrower acknowledges and
accepts these Terms & Conditions. In addition to these Terms and Conditions, any other
conditions relating to the accounts of the customer/borrower including but not limited to
those governing Internet Banking services or Mobile Banking Services, as the case may
be, will also apply to this Pre Approved Pension Loan. In the event of any conflict between
these Terms and Conditions and such other conditions, these Terms and Conditions will
continue to prevail in respect of the Pre-Approved Pension Loan.
■ Nothing herein contained shall prejudice any rights or remedies of the bank in respect of
any other present or future security guarantee obligation or decree for any indebtedness
or liability of the borrower to the bank.
Page | 51
Annexure-II
Pension Loan - Score Card
Parameters
Sub-Score
Weights
Age
24
less than equal to 50
24
> 50-<= 65
15
> 65
5
EMI/ NMI
23
<= 20%
23
> 20% to <= 30%
15
> 30% to <= 40%
10
> 40% to <= 50%
5
>50 %
0
Bureau Information- CIBIL Score
25
New to Credit
10
<550
0
550-649
15
650-749
20
750 & above
25
Net Annual Income
21
<= 1 lakhs
0
> 1 lakhs & <= 2 lakhs
11
> 2 lakhs & <= 2.5 lakhs
17
> 2.5 lakhs
21
Loan Tenor
7
<= 36 months
7
> 36 months to 60 months
3
> 60 months
0
The cut-off score of Pension Loan is as below:
Score Band
Credit Grade
Lending Decision
>80
Grade-1
76-80
Grade-2
71-75
Grade-3
61-70
Grade-4
CLEAR SANCTION
51-60
Grade-5
46-50
Grade-6
41-45
Grade-7
36-40
Grade-8
26-35
Grade-9
DECLINE
<=25
Grade-10
Page | 52
PENSION LOANS
Checklist of Documents (self-attested) to be submitted along-with Loan
Application Form
i. Application form duly filled by the Borrower and Guarantor
ii. 2 Latest Passport size photographs
iii. Last 6 months’ Bank Account Statement where pension is credited
iv. Asset & Liability statement in the Bank’s standard format
v. Copy of Pension Payment Order from the Pensioner/Family Pensioner
vi. Requisite Undertakings from Applicants as well as treasury/PSUs officials
in case PPOs are held with Treasury/PSUs-where applicable
vii. Submission of OVD (refer to table below)
Following to be submitted:
(a) Permanent Account Number (PAN) of borrower or Form 60.
(b) At least one copy of the Officially Valid Documents (OVDs) mentioned below, as proof of his identity and
current address:
i. Passport,
ii. Driving license,
iii. Proof of possession of Aadhaar Number,
iv. Voter's Identity Card issued by Election Commission of India,
v. Job card issued by NREGA duly signed by an officer of the State Government,
vi. Letter issued by the National Population Register containing details of name and address
If the OVD furnished by the customer does not contain updated address, the following documents shall be
deemed to be OVDs for the limited purpose of proof of address:
i. Utility bill which is not more than two months old of any service provider (electricity, telephone, post-
paid mobile phone, piped gas, water bill);
ii. Property or Municipal tax receipt;
iii. Pension or family pension payment orders (PPOs) issued to retired employees by Government
Departments or Public-Sector Undertakings, if they contain the address;
iv. Letter of allotment of accommodation from employer issued by State Government or Central Government
Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial
Institutions, listed companies and lease and licence agreements with
such employers allotting official accommodation.
[Provided that the customer shall submit OVD updated with current address within a period of three
months of submitting the above documents]
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