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A new personal segment advances product for funding subscription
to IPOs of reputed PSUs and Public Sector Companies which
are
in
the list
of
BSE100
and
issues arising out of disinvestments of Central Government
has been launched. The details of the scheme are as follows.
| Purpose |
For funding subscription to IPOs
of reputed PSUs and Public Sector Companies which
are in the list of BSE100 and issues arising out
of disinvestments of Central Government. |
| Eligibility |
a. Existing customers who have
availed a home loan/car loan/education loan which
are not in arrears at the time of applying for
IPO loan.
b. New customers having sufficient sources of income/cash
flows to repay the loan within the stipulated period
as evidenced by IT returns of the last 2 years.
c. Senior Citizen customers of the branch who are
banking with us for long time and may not have
Tax returns.
|
| Amount
of loan |
Minimum: 50% of the application
money stipulated in IPO.
Maximum: Rs.50, 000 per issue (maximum amount of
investment for retail investors, fixed by the company
as per offer application). Total liability for
financing under IPOs should not exceed Rs.10 lacs
and at any time the total liability of the borrower
should not be more than Rs.20 lacs as stipulated
by RBI.
Where a part of the issue price is to be paid at
the time of application, it should be ensured that
full amount of margin money is deposited upfront
with the branch to obviate the possibility of the
borrower backtracking after allotment of shares.
The margin money received in excess of the amount
will be deposited with the application form will
be parked in the Savings Bank account of the borrower
and a lien noted against the deposit.
|
| Margin |
50% of the issue price of shares,
applied/bid, as per extant RBI guidelines for loans
for subscription to IPOs.
|
| Security |
Lien on shares, if
allotted.
The shares will be maintained in the customer’s
Demat account with our branch. The shares, if allotted,
will automatically get credited to this account,
as the number thereof as also the number of the Savings
Bank / Current account(for credit of refunded amount)
will be mentioned in the Share application / Bid
form which should be forwarded through our branch. |
| Repayment |
Loan will be repaid
within 30 days of allotment.
(Security documents will allow the branch to sell
the shares if the loan amount is not liquidated within
the stipulated period. However, the branches will
permit a maximum notice period of 30 days before
selling the shares).
One Post dated cheque should be given by the
borrower at the time of disbursement of the
loan; representing interest for first thirty
days and an understanding to debit his Savings
/ Current account for any shortfall caused by a decline
in the value of the share and the accrued interest. |
| Rate of interest |
For employees qualifying under
Express Credit floating SBMPLR (at present 13.75%).
For all other borrower qualifying under credit scoring
model, minimum score 60, 150 bps over SBMPLR rate
applicable at present 13.75% p.a.
Penalty of 2% to be charged if the loan is not repaid
within due date. |
| Type of loan |
Demand loan |
| Authorized branches |
Branches where
DP facility is available <<<
click to see the list of branches
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| Processing fee |
I loan - Rs.500/- (no separate
charges for opening a new Demat account
Subsequent loans - Rs.100/-
After 3 loans which are promptly repaid - Nil |
Documentation
required
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i) Application form for loan with
photograph.
ii) Application form for Demat account
iii) Proof of identity (for new customers)
iv) Proof of residence (for new customers)
v) Agreement for loan
vi) Complete Bid cum application form booklet or
Share application form booklet.
vii) DP note
viii) DP note delivery letter
ix) Dividend collection mandate.
x) Copy of Pan Card
xi) A declaration from the borrower indicating the
details of the loans/advances availed against shares
and other securities from any other bank/s in order
to ensure that the total loan from all the Banking
sector does not exceed Rs.20 lacs. |
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LIST OF BRANCHES WHERE THE SCHEME
WILL BE IMPLEMENTED AT PRESENT
1.Bangalore Branch
2.Basavanagudi
3.HAL II Stage
4.Koramangala
5.PBB, 8th Main Malleswaram
6.Rajajinagar IV Block
7.Dalal Street, Mumbai
8.Banjara Hills, Hyderabad
9.Abhirampuram, Chennai
10.Vontikoppal, Mysore
11.Mangalore
12.Ahmedabad
13.Surat
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