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Credit Analysis For Personal Laon


Credit Analysis For Personal Laon

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             ABN AMRO BANK
              MAY-JULY. 2007



                     To Whomsoever It May Concern

This to certify that Mr. Siddharth Shrikant Raut is a student of
Vishwakarma Institute Of Management , PUNE .He has successfully carried
out his summer project titled “ CREDIT ANALYSIS OF PERSONAL
LOAN” at ABN AMRO BANK , Pune from 20-05-2007 to 31-07-2007 ,in the
partial fulfillment of Masters in Business Administration Course of
University of Pune (2006 – 2008 ) .

He has worked under our guidance and directions. His work is found to be
good and complete in all respects .during the period we found him hard
working, sincere and loyal.

We wish him all the best for his Future.

Taking advantage of the occasion of submission of this project, I take an opportunity to
thank to all who were directly or indirectly involved in this project and without there
guidance, co-operation and support this would not have been possible.

       I am highly obliged to Mr. Atul Sharma(Head – Unsecured Asset) for
providing spark in the dark and providing us the opportunity to work in CREDIT
ANALYSIS of prestigious organization like ABN AMRO BANK I was fortunate to get
every sought of guidance which acted as a pole star for me.

       I would also like to thank Staff of ABN AMRO BANK who has been backbone
of our project & for being “Friend, Philosopher & Guide” at every stage of the project.
There valuable suggestions, encouragement & patience are only responsible for seeing
this project through to completion.

I am proudly indebted to my project guide prof smita sovani mam for all her support and

Guidance towards the completion of the project.

       It was their vision, my hard work & blessings of my parents, which made me
capable to complete this project successfully.

I would be failing in my duty if I do not acknowledge the gratitude to Dr Sharad joshi ,
director, V I M for his keen interest and valuable suggestions that went all the way
successful completion of this work.

Above all, I thank ‘God ‘for making this mortal venture possible.

                                                                     Thanking All,
                                                                     Siddharth Raut
                                   TABLE OF CONTENTS

                           CHAPTER 1 :                INTRODUCTION

EXECUTIVE SUMMARY.......................................................................    2
OBJECTIVE OF THE PROJECT ………………………………………                                                    3

                        CHAPTER 2 :               COMPANY PROFILE

ABN AMRO BANK……………………………………………………… 5
CORPORATE VALUES & MISSION …………………………………... 6
THREE BUSINESS UNITS ……………………………………………… 8
    1. Consumer & commercial clients
    2. Private clients & asset management
    3. Wholesale clients

ABN AMRO BANK IN INDIA …………………………………………..                                                   11
ACHIEVEMENTS ………………………………………………………... 12


                          CHAPTER 3 :                PERSONAL LOAN

PERSONAL LOANS ……………………………………………………. 17
LOAN WITHOUT INCOME STATEMENTS …………………………                                                  23
Credit cards
Surrogate loan
Relationship rewards for existing ABN AMRO customers

Personal loan top up schemes
                 CHAPTER 4 :   CREDIT LINE

CONCEPT OF CREDIT …………………………………………… 30

Co – Borrowers
INTREST RATES …………………………………………………………             46
GUIDELINENOTE ON NORMS …………………………………………          49
LIST OF APPROVED COMPANIES …………………………………….. 52

                        CHAPTER 5:

CASE STUDY …………………………………………………………….. 54

                        CHAPTER 6:

CONCLUSION ……………………………………………………………. 59

                        CHAPTER 7:

BIBLIOGRAPHY …………………………………………………………. 61

                             EXECUTIVE SUMMARY

ABN AMRO BANK is one of the fast growing foreign banks in India. It has got very
important presence in the consumer as well as corporate sectors. I have undertaken a

The main objective of the project was to know the loan proposal system of ABN AMRO
BANK. The analysis of any proposal consists of two parts

                                       Internal
                                       External

Internal is extract of internal analysis , consisting of calculation of tenor as per norms
,calculation of eligibility with reference to income shown by an applicant, then if
approved, to calculate the equated monthly installments & actual disbursement.

External analysis involves collection of documenry proofs regarding income profile,
residence verification, repayment capacity and the end use.
                       OBJECTIVE OF THE PROJECT

 To find out exactly what is Credit Analysis is?

 How it is to be done?

 To find out what is the criteria to be considered by the banks to give loan for
  various purposes.

 How the processing is done on the applicant’s loan request & how it is to be
  accepter or rejected.

 To know and study various credit facilitities provided by the banks.

 How the eligibility for granting for granting the loan is calculated.

                             ABN AMRO Bank

      On 29 March 1824 Kng Willem-I issued a royal decree creating the
Nederlandsche handel-Maatschappij (NHM) with the aim of reviving trade
between the Netherlands and the Dutch East Indies. It started with the
Trade Company Edwards, Henriquez and Co., establish in 1856 in
Curacao whose main activity was trade and sea transportation. Several
years later the company began with money exchange-activities and little by
little became a bank of full value. In 1964, NHM merged with De
Twentsche Bank to form Algemene Bank Nederland (ABN), while
Amsterdamsche Bank and Rotterdamsche Bank joined to become
Amsterdam-Rotterdam (AMRO) Bank. In 1991, these two banks merged
as ABN AMRO Bank. Today, ABN AMRO Ban has a powerful presence in
world markets, building on a tradition of stimulation international trade.

      ABN AMRO Bank ranks 10th in Europe and 22nd in the world based
on tier 1 capital, with over 3,500 branches in more than 70 countries, a
staff of 110,000 full-time equivalents and total assets of EUR 597 billion
(as per end March 2003). The Bank is listed on several exchanges,
including the Amsterdam, London and New York Stock Exchanges.

      Leadership in chosen markets is critical to ABN AMRO Bank's long-
team success as well. We have three principle clients segments:
Consumer and Commercial Clients, Wholesale Clients and Private Clients
and Asset Management. Within ABN AMRO Bank's organizational
structure, these are also core global Strategic Business Units. We strive to
maximize the value of each of these businesses and the synergies
between them.
                        Corporate Values & Mission

      Our Corporate Values provide the foundation for the bank's newly
introduced business principles. The bank formulated these Corporate
Values in 1997.

Integrity: Above al, we are committed to integrity in all that we do, always,

Teamwork: Teamwork is the essence of our ability to succeed as a trusted
preferred supplier of financial solutions to our clients. Our overriding loyalty
is to the good of the whole organization, requiring us all to learn from each
other and to share our skills and resources across organizational
boundaries for our client's benefit.

Respect: We respect every individual. We draw strength from equal
opportunity and diversity, at the same time supporting personal growth and
development. We value and we all benefit from the entrepreneurial spirit
of each individual.
Professionalism: To be of service to our clients we are committed to the
highest standards of professionalism, pursuing innovation deploying
imagination, being open to new ideas and acting decisively and
consistently. We are determined to deliver outstanding quality so that our
relationships with our clients will be long lasting and close.

Mission: ABN AMRO Bank's Mission is to create maximum economic
value for our shareholders through a constant relationship focus on the
financial services needs of our chosen client segments and a strict
adherence to our financial targets.

Excellence of service to our clients and leadership in our chosen markets
are the reasons behind our long-term success.

We    strictly   follow   a   relationship   approach,   which   keeps   clients
requirements clearly in focus and provides excellent service through the
professionalism and motivation of our employees across the globe
                          Three Business Units

1. Consumer & Commercial Clients (C & CC)

      The business unit is to provide services to individuals and small to
medium-sized enterprises requiring day-to-day banking. ABN AMRO
serves approximately 15 million clients, mainly through their major
presence in three home markets: the US Midwest, the Netherlands and
Brazil. The Businesses Unit New Growth Markets is also expanding its
consumer and commercial operations in selected countries such as India,
Hungary and Thailand. For our personal customers we offer a range of
products to meet the financial needs of the individual.

      The financial services and solutions for small to medium sized
businesses includes a variety of commercial financing and lending services
such as business loans and lines of credit, cash management solutions,
public services and small business opportunities, providing them with the
financial tools necessary to manage their business.
2. Private Clients and Asset Management (PCAM)

      Private Clients and Asset Management Unit is for individuals and
institutional investors. ABN AMRO is a leading player in private banking
both in the Netherlands and in France, and has strong positions in
Luxembourg, Miami and Switzerland. Private clients ranks among the
world's top 10, with EUR 94 billion in Assets under Administration (as per
end March 2003).         Asset Management has a local presence in 30
countries and FUR 148 billion in Assets under Management (as per end
March 2003). We offer highly personalized banking for our private clients,
aiming to structure and enhance wealth with services ranging from
discretionary portfolio management to international estate planning and
Trust. At Asset Management we offer strong capabilities in the
management of equities, fixed income, money market, property and
quantitative products.

Solutions are suggested in the areas of

             Banking
             Investment advisory
             Discretionary portfolio management
             Investment funds
             Trust
             International estate planning
3. Wholesale Clients (WCS)

      ABN AMRO Bank's traditional strength lies in its leadership in
providing a gamut of services to corporate and institutions, combing its
corporate and investment banking activities in one integrated business unit
- Wholesale Clients. This is one of the largest Europe-based wholesale
banking businesses with around EUR 5 billion in annual revenue (as per
end 2002), 10,000 clients, 20,000 staff and operations in over 45 countries.
With a global network, specialists in all major industry sectors and a broad
range of products, ABN AMRO provides local and global expertise for
complex cross-border deals. For our corporate and institutional clients we
aim to be a leading provider of commercial and investment banking
products and services

      By combining our sector expertise with in –depth product knowledge in
      both corporate and investment banking, We deliver a broad range of
      benefits, including

            Sector Expertise
            Integrated Product Offering
            Local Presence
            Financial strength
                         ABN AMRO Bank in India

ABN AMRO Bank started its operations in India in 1920. till the early
1990's it was largely a bank catering to the diamond trade. It started
wholesale banking in 1995, the securities business and corporate finance
services soon after, and consumer banking in 1999. ABN AMRO Bank
took over the consumer banking business of Bank of America in 1999 as
part of a purchase agreement covering acquisition of this line of business
in India, Taiwan and Singapore. The consumer banking business of Bank
of America acquired by ABN AMRO Bank included consumer lending,
deposit mobilization, auto finance and mortgage activities. The acquisition
was in part of US$ 200 million deal signed between the two banks for
purchasing the consumer banking business by ABN AMRO Bank in these
three countries.

      ABN AMRO Bank (India) has an 83 years long experience of the
Indian business scenario. Traditionally known as a strong "diamond-
financing bank", it has turned into a bank providing a comprehensive range
of services with a difference.

      The bank took off in a big way in 1991, after the merger of ABN and
AMRO worldwide. The Delhi branch was functional in the very same year.
ABN AMRO Bank was launched in other cities throughout India between
1994 and 1999. They were Chennai in 1994, Pune in 1997 and Baroda in
1999, while the Hyderabad and Bangalore branches were opened in 2001.
The year 2002 saw the opening of the Noida office. AA Securities (I) Pvt.
Ltd. formed in September 1998.

Best at cash management Award in September 2001 – The banker

Corporate Finance India ranked second in M&A in the investment
Banking arena in 2001 – The Economic Times.

ABN AMRO Securities India Best foreign bond house No 1 arranger in
private sector Euro money 2000.

Top bank on “MANAGEMENT QUALITY “parameter business India
‘Best banks survey 2000’.

7th most admired commercial bank in the world fortune magazine 2000

Top foreign bank in India The Economic Times – CMIE Survey 1999

Second overall in banking industry financial express – BRIS Survey

Judged India’s No 1 bank by business today magazine in December
                    Products and Services : Overview

      Our local expertise is backed by the strength of ABN AMRO Bank's
vast international network. This enables us to offer the most innovative
financial products and services across banking segments, to help achieve
company's strategic local, regional and international goals and fulfill client's
personal investment needs.

      Core Business                           Products and Services
      Consumer Banking                  CREDIT CARD
                                        LOAN PRODUCTS
                                             Loans against Securities
                                             Car loans
                                             Persona loans

                                        DEPOSIT PRODUCTS
                                             Savings Accounts
                                             Current Accounts
                                             Fixed Deposits

                                              Products & Services

                                        INVESTMENT SERVICES
                                             Mutual Funds
   Debit Card
   Net Banking
   Express Cash
   ATM Services
   24 Hour Bank by Phone
   Bill Payment
   Doorstep Banking
   Depository Services
   National Access
   365 Days Banking
   Extended Banking Hours
Wholesale Banking
                        Structured Products
                        Trade Services
                        Cash Management
                        Correspondent Banking
                        Precious Metals
                        Electronic Banking
                        Custodial & Security

                    Services   Structured       Corporate
                        INR Interest ate Swaps
                        Currency cum Interest

Private Banking
                        Portfolio Advisory
                        Value Added Services

                              PERSONAL LOAN

Personal loans help you to take care of your immediate requirements
Without much of a hassle. The most attractive feature of the personal loan
is that you do not have to give any kind of security to avail this loan. No
Security, Collateral or Guarantors are required to avail personal loans.
Also, no questions regarding the end use of the loan are asked since
personal loans do not require any security or hypothecation of assets, the
rate of interest charged by them is higher compared to any other secured

ABN AMRO Personal Loans are completely flexible - you can take your
loan for purchase of assets and consumer durables, home improvements,
tax saving investments, higher education, holidays and travel, emergency
medical needs, marriage in family … in short, for any declared legal use
without pledging any security.

      You may also avail of our "Balance Transfer Program" to retire any
high cost loans that you may have taken, including your credit card dues
by simply opting for an ABN AMRO Personal Loan.

      There are no hidden charges - our Personal Loans come to you with
minimum formalities, at attractive interest rates and only a one time non-
refundable processing fee. If you are an existing ABN AMRO customer,
you could be eligible for special discounts on the interest rates and
simplified application formalities under our "Relationship Rewards
          Loan with Income Statements / Salaried Employees

      The loan offered to salaried employees is given according to the
companies they are working with. ABN AMRO Bank has around 7500
companies listed with them, and they offer loans to the employees working
in these companies only. The criteria for listed companies are according to
the company profile, past performance, profit earning ability etc. These
companies are again been divided into 3 categories i.e. Category A, B & C,
according to the above factors.

      ABN AMRO Bank gives loan to the officers and management cadres
only. They don't give loans to the employees below the officers grade i.e.
to the supervisor, the workers etc. The applicant should be earning a
Gross annual salary of minimum Rs. 1, 00,000/- per annum. The
conditions are as follows.

              Officer or management cadre
              Working in the current employment for at least 1 year or
                overall 3 years work experience
              Age between 23 to 60 years
              Gross annual salary more than Rs. 1, 00,000/- per annum.

      This maximum amount that can be given to an applicant is subject to
his net monthly income. The amount calculated by the applicants Net
Adjusted salary.
Following is the table that is used to calculate the maximum loan amount.
             Tenure                          Max Loan Amount
              1 year                     5 times net adjusted salary
             2 years                    10 times net adjusted salary
             3 years                    12 times net adjusted salary
             4 years                    15 times net adjusted salary
             5 years                    18 times net adjusted salary

Document Required:
   1.    Application form
   2.    Latest 2 months salary slip
   3.    Bank statement
   4.    Photograph (signed on back side)
   5.    Identity proof
          PAN Card
          Driving License
          Passport
          (if the above documents are not available then LIC premium
            receipt/SSC Certificate with Photo and sign verification is
   6.    Employment proof (Form 16 H or appointment letter)
                       Self Employed Professionals
Doctors (BDS, MBBS, MD, MS only)

      The loan offered to the self-employed professionals is, at present
limited to doctors (BDS, MBBS, MD, MS) only. The rate of interest for this
category is 16.5%. The conditions for this category area as follows.

            Net Annual Income should be Rs. 1,00,000/- per annum
               (at least Rs. 75,000/- from profession)
              Overall 3 years in the business or profession
            Age between 23 to 65 years.

      The maximum amount that the bank can give is subject to the Net
adjusted salary of the applicant. The calculation for the same is done in the
following manner.

NAS (P) = Net Income (ITR) - (EMI * 12) - (IT paid in a particular year)
Degree                                Max Loan Amount
MBBS & BDS                            4 times net adjusted salary
MD & MS                               5 times net adjusted salary
                         Self Employed Businessmen

      The loan offered to the self-employed businessmen is limited to the
Proprietor, Director, Partner only. The rate of interest for this category is
22.5% for the Director and Partners.

          Net Annual Income should be Rs. 1,00,000/- per annum
          Overall 3 years in the business
          Age between 23 to 65 years

The multiplier used here is as follows.
NAS (B) = Net Income (ITR) - (EMI * 12) - (25% CC) - (IT paid)

Document Required:
   1. Application form
   2. Latest 2 years ITR with Balances sheet and P & L statement
   3. Bank statement
   4. Photograph (signed on back side)
   5. Identity proof
         a. PAN Card
         b. Driving License
         c. Passport
         d. (if the above documents are not available then LIC premium
             receipt/SSC Certificate with Photo and sign verification is
   6. Establishment proof
   7. Telephone connection is a must in the office sand residence both.
                     Loan without Income Statements

Credit Cards
      In this program the loan is offered against the credit card limit. ABN
AMRO Bank gives loan to applicants having the credit cards of all MNC's,
SBI, ICICI, HDFC except to the employees of Private Limited Companies.

          Rate of interest 21.5% if loan amount <=50000 otherwise
          Tenure 1 to 3 years
          Multiplier : 1.2 times credit limit for salaried
                           1 for other i.e. SEPs and SEBs.
          Maximum loan limit Rs. 3,00,000/- (in case of charge card/
              diners club limit is Rs. 1,00,000/-)

Documents Required:
          Application form
          Latest 2 months billing for Credit Card (No late charges
          Photocopies of both sides of credit card
          Identity proof
          PAN Card
          Driving License
          Passport
 (if above documents are not available then LIC premium
   receipt/SSC certificate with photo and sign verification is
 Photograph (signed on both sides)
 Employment / Establishment proof (Form 16H or appointment
   letter/shop license)
 Card must be at least 1 year old
 Surrogate Loan (Track Record of Previous PL/Auto/Housing Loan)

      In this program the loan is offered on the track record of the previous
Personal Loan, Car loan and Housing loan. Track record on the loan taken
from the following companies will make the applicant eligible for the loan
offered by ABN AMRO Bank.
              State Bank of India (SBI
              ICICI
              HDFC
              Kotak Mahindra
              Amex
              HSBC
              Sundaram Fin.
              Tata Fin.
              IDBI
              ING Vyshya
              UTI
              DCB
              Centurain Bank of Punjab
              GE Money/ Countrywide
              Citi Fin.

          Previous loan should be matured at least for 12 months for the
              salaried class and 18 months for businessmen.
          Loan limit will be Rs. 25,000/- to Rs. 3,00,000/-
          Interest will be 20% for car/housing loan
        Interest 1% less than previous personal loan (should not be
          less than 17.5%)
        Tenure 1 to 5 years
        Multiplier is 15 times of EMI for salaried
        For Businessmen and others
          If loan seasoning is done between
          12 - 18 months 12 times of EMI
          18 months and above 15 times of EMI

Documents Required
        Application form
        Identity proof
        PAN Card
        Driving License
        Passport
        (if above documents are not available then LIC premium
          receipt/SSC certificate with photo and sign verification is
        Photograph (signed on both sides)
        Track record of last 12 months/ 15 months bank statement
        Employment / Establishment proof (Form 16H or appointment
          letter/shop license)
     Relationship Rewards for Existing ABN AMRO Customers

Car Loan/ Personal Loan
     (With relation of at least 8 months)

      Max loan limit - Rs. 25,000/- to 4,00,000/-
      Interest 21% for self employed
      All others at respective rack rates
      Tenure 12 months to 60 months
      Multiplier - Maturity of previous loan
      8 months - 12 months * EMI paid
      12 months - 18 months (EMI * No of installments)* 1.2 times
      18 months and above (EMI* No of installments)* 1.3 times
        subject to a Max of 30 installments
     Consideration upto 6 months from completion of previous loan
                       Personal Loan Top Up Scheme

  Under this program, any applicant can go for the top up scheme. Here after the
completion of six months, the applicant can get an additional loan amount to the
EMI of the loan and the completed tenure of the loan.

                            CONCEPT OF “CREDIT”
  1. It is the idea that if you build up a reputation for paying bills and debts on
     time you will be able to borrow money in the future.
  2. Credit is important because it enables you to borrow money when you need
     it. In addition, the better your creditworthiness the more cheaply you will
     be able to borrow money whether for a car, education, home or some other
     large expenses.
  3. On the other hand, if you are not a good credit risk, you may not be able to
     borrow when you need to, or you might be able to borrow but only at a high
     interest rate.

            Credit is used primarily in order to obtain loans. Loans can be
              excellent way to be fund large purchases and business initiative
              ,but managing debt can be complicated process
            It can take just few months to get into financial trouble and years
              to get out.
            Although debt is some time useful, there is diff between good debt
              and bad debt the two most important characteristics are how you
              borrow the money and what you do it .HOW FRUITFULLY YOU
              USE IT.
            Even though debt is a part of life, the key to preventing it from
              becoming destructive is knowing its benefits and risks.

     Unfortunately credit fraud is increasingly serious problem having grown
           almost threefold in frequency in the last five years. Under the most
           common scham called “Identity Theft “the criminal opens a credit card or
           other account with another person name. The criminal then purchases
           goods and services and you get stuck with the bill.
     Credit card fraud & credit analysis are not related with each other.
     Sometimes the creditor / borrower may qote wrong information about his
           personal loan details. his capacity to pay off the loan ,the reasons for taking
           the loan.

              Therefore to overcome all this fraudulent activity credit analysis is to be
done, to check out the worthiness of the creditor to repay the loan and pay the

                                                  “The process of evaluating an

           applicant's loan request or a corporation's debt issue in order to

           determine the likelihood that the borrower will live up to his/in


Min Age - 23
Max Age (on loan maturity) - 60
Residence Stability - 2 yrs in Pune or in Current Emp>3 yrs or Self-
Owned resi or Gross Sal> 3.6L
Job Stability - 1 yr at current job or 3 yrs total work experience
Basic Documents - (1) photo with sign on back side (2) ID proof (3)
Job/Business Stability proof

                            Self employed - Biz
Min Age - 25
Max Age (on loan maturity) - 65
Residence Stability - 2 yrs in Pune of 1 yr in current resi OR self owned
Job Stability - 3 yrs in same biz
Basic Documents - (1) photo with sign on back side
                     (2) ID proof
                     (3) Job/Business Stability proof
                               RR Customers
Min Age - 21
Max Age (on loan maturity) - 70
Residence Stability - 2 yrs in Pune or in Current Emp>3 yrs or Self-
Owned resi or Gross Sal> 3.6L
Job Stability - 1 yr at current job or 3 yrs total work experience
Basic Documents - (1) photo with sign on back side (2) ID proof (3)
Job/Business Stability proof

                        Verified Income Program -
Cat A
Min Income - Gross 1 Lac
Max loan amt - 10 lacs
Max Tenor - 5 yrs
Emp Continuity Req -
Maximum Loan eligibility-Multiplier -        1 yr   - NAS x 5
                                             2 yrs - NAS x 10
                                             3 yrs - NAS x 12
                                             4 yrs - NAS x 15
                                             5 yrs - NAS x 18
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting
3 Salary Credits.
Additional Qualifying requirements -
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
Cat B
Min Income - Gross 1 Lac
Max loan amt - 5 lacs
Max Tenor - 4 yrs
Emp Continuity Req -
Maximum Loan eligibility-Multiplier -     1 yr   - NAS x 4.5
                                          2 yrs - NAS x 9
                                          3 yrs - NAS x 10
                                          4 yrs - NAS x 13
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting
3 Salary Credits.
Additional Qualifying requirements -
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC

Min Income - Gross 1 Lac
Max loan amt - 3 lacs
Max Tenor - 4 yrs
Emp Continuity Req -
Maximum Loan eligibility-Multiplier -     1 yr   - NAS x 4
                                          2 yrs - NAS x 8
                                          3 yrs - NAS x 9
                                          4 yrs - NAS x 11
Documents - (1) Latest 2 payslips (2) 6 months bank statements reflecting
3 Salary Credits.
Additional Qualifying requirements -
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
Min Income - Gross 1 Lac
Max loan amt - 1.25 lacs
Max Tenor - 3 yrs
Emp Continuity Req -
Maximum Loan eligibility-Multiplier -       1 yr     - NAS x 4
                                            2 yrs - NAS x 8
                                            3 yrs - NAS x 9
Documents - (1) Latest 2 payslips (2) 6 months bank statements reflecting
3 Salary Credits.
Additional Qualifying requirements -
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC

                            Software Professionals
Min Income - Net 1.5 Lacs
Max loan amt - 5 lacs
Max Tenor -
EMP Continuity Req -
Maximum Loan eligibility-Multiplier -       1 yr     - NAS x 3.5
                                            2 yrs - NAS x 7.5
                                            3 yrs - NAS x 9
                                            4 yrs - NAS x 11.25
                                            5 yrs - NAS x 13.5
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting
3 Salary Credits (3) must
Additional Qualifying requirements -
- Must have 12 months old loan with approved financier ( lac AL/HL or
75,000 PL) OR CC with min 40,000 limit.
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC

Min Income - Net 2.4 lacs
Max loan amt - Cat A - 5 lacs & Cat B - 3 lacs
Max Tenor -
EMP Continuity Req - Min 3 yrs
Maximum Loan eligibility-Multiplier -      1 yr   - NAS x 3.75
                                           2 yrs - NAS x 7.5
                                           3 yrs - NAS x 9
                                           4 yrs - NAS x 11.25
                                           5 yrs - NAS x 13.5
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting
3 Salary Credits (3) must
Additional Qualifying requirements -
-   Min age of 23 yrs and must not be staing in shared rented
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC

                            Surrogate Program
Loan track record NRR
Max loan - 7.5 lacs
Min vintage - 8 months
Max tenor - 5 yrs
Program requirement - Min 10 EMI's paid and Min loan taken Rs.
Max Loan eligibility -
10-12 EMI's x EMI x No. of EMI's paid x 1.25
>12-18 EMI's - EMI x No. of EMI's paid x 1.45 (subj to Max of 30 EMI's) >
18-24 1.5
Eligibility -
Citibank, StanC, AmEx, HSBC, ICICI, HDFC, Sundaram Fin. Kotak Mah,
Tata Fin, IDBI, ING Vysya, UTI, KOTAK, DCB, Centurian Bank of Punjab,
GE Money/Countrywide**, Citi Fin**, Maruti Countrywide**
Documentation - (1) Repayment track, (2) 3 months bank statements OR
(1) Amortization schedule & 8 months banking.

                           Surrogate Program
                             Mobile Phone
Max loan - 1.25 lacs
Min vintage - 3 months
Max tenor - 3 yrs
Program requirement - Min Avg Billing of Rs. 1500/- for last 3 months
Max Loan eligibility -
* Rs. 1500 - Rs. 2500 - 75,000 > Rs. 2500 - 1, 25,000
Eligibility -
Aritel, Reliance, Idea, Hutch, BSNL, Tata Mobile & BPL
Documentation - Latest 3 months mobile bill statements showing min
billing of Rs. 1,500/-
                                Surrogate Program
                               Other Bank Deposit
Max loan - 3 lacs
Min vintage - 6 months
Max tenor - 3 yrs
Program requirement - Saving Bank A/c with 6 months relationship
Max Loan eligibility -
* 6-12 months - ADB x 1
* 12-18 months - ADB x 2
*> 18 months - ADB x 3
Eligibility -
ICICI, HDFC, StanChart, Citibank, HSBC, AmEx, UTI, IDBI & SBI
Documentation - Latest 6 months bank statements from S/B a/c with last
days avg balance >/= Rs. 25,000/-

                         Balance Transfer Program
Credit Card
Max loan - 3 lacs
Min vintage - 8 months
Max tenor - 3 yrs
Program requirement -
* Min Credit Limit - 25,000/-
* Limit utilization on Card =/<80%
* Card should have transaction in last 2 months.
Max Loan eligibility -
* 8-12 months - Cr limit x 2
* 12 months - Cr limit x 3
Eligibility -
Sai Employees of Prop & P'ship mush have min MOB>12 months
Documentation - (1) Latest 2 months Card Statement (2) front & back
copy of the Card.

                         Balance Transfer Program
Max loan - 4lacs
Min vintage - 1 yr
Max tenor - 4 yrs
Program requirement -
Min 12 EMI's paid and Min loan taken 1 lac
Max Loan eligibility -
* 12 to 18 EMI's = 1.2 x Principal Outstanding
* 18 EMI's = 1.3 x Principal Outstanding
Eligibility -

Documentation - (1) Repayment track for the last 12 months (2) 3 months
bank Statement OR (1) 12 months bank statements (2) amortization
schedule & (3) Resi. & DOB Proof.
ROI - Personal Loan: 1% less than competition subject to min of 16%
                              RR Program
                                C A/c
Min vintage - 6 months
Max loan - 6 lacs
Max tenor - 5 yrs
Program eligibility -
6 months ADB 40,000/-
Loan eligibility -
* 6 to 12 months - ADB x 3
* 12 to 18 months - ADB x 5
* > 18 months - ADB x 6

                              RR Program
                                SB A/c
Min vintage - 6 months
Max loan - 6 lacs
Max tenor - 5 yrs
Program eligibility -
6 months ADB 20,000/-
Loan eligibility -
* 6 to 12 months - ADB x 3
* 12 to 18 months - ADB x 5
* > 18 months - ADB x 6
                                RR Program
Min vintage - 8 months
Max loan - 4 lacs
Max tenor - 4 yrs
MUE - 8.5 Iacs
Program eligibility -
Min Credit Limit - 25,000/-
Loan eligibility -
* 8 -12 months - Cr limit x 2
* > 12 months - Cr limit x 3

                                RR Program
                                Auto Loan
Min vintage - 8 months
Max loan - 7.5 lacs
Max tenor - 4 yrs
MUE - 8.5 Iscs
Program eligibility -
8 EMI's paid
Loan eligibility -
* 8 -12 MOB - EMI x No. of EMI's paid x 1.5
* > 12-18 MOB - EMI x No. of EMI's paid x 1.75
* > 18 MOB - EMI x No. of EMI's paid x 2 (subj to a Max of 36 EMI's)
                                RR Program
Min vintage - 8 months
Max loan - 7.5 lacs
Max tenor - 5 yrs
MUE - 8.5 Iscs
Program eligibility -

Loan eligibility -
EMI x No. of EMI's paid x 1.5
* Subj to a Max of 18 EMI's & LTV of HI < 80%

Top Up Program
Min loan enhancement - Rs. 50,000/-
Max loan - For Salaried, loan amount caps as per present employer
category (Cat A/B) AND for SE as per program
Min vintage - 8 months
Max tenor - New loan tenor either same as earlier loan of higher subject to
program caps (depending on whether existing loan is RR/VI/SI etc).
Program requirement -
# Any applicant who has availed a loyalty/special loyalty auto loan from the
bank in the last 3 months will not be eligible for a loan under the Top Up
# If existing PL has already closed/run off, then the loan multipliers will
apply ONLY if the last payment is not more than 12 months old. if last
payment is 12-24 months old, the PL can be processed as Override-
however multipliers will not apply.
# Max 4 Top up loans allowed.
# The EMI's for the top up loan should be from the same account as that of
the existing loan and the existing business/employer (entity only) and
residence addresses should be unchanged, failing which, a full verification
will be done i.e., residence and/or business/employer.
# The new loan may be approved for either the same tenor as the earlier
tenor or a higher tenor subject to the maximum tenor allowed for the
specific program.
# The applicant category must be unchanged from the original application
i.e. if the applicant was earlier salaried and now self employed he will not
be eligible under the
Loan eligibility -
If, 8 -12 EMI's paid then EMI's paid x 1.2 & If, > 12 months then EMI's paid
x 1.3
* > 12-18 MOB - EMI x No. of EMI's paid x 1.75
* > 18 MOB - EMI x No. of EMI's paid x 2 (subj to a Max of 36 EMI's)

  This program is only for the salaried applicants. In this program the spouse can
be the co-borrower for the loan amount.

   The income of the spouse can be added in the gross income for the multiplier,
to find the maximum loan that can be given to the applicants. Here 60% of the
spouse’s gross income can be added for eligibility.

Although ABN AMRO BANK does not require guarantors for personal loans, but
there are some exceptions where there is need for the guarantors. The following
are the conditions when there is need for guarantors.

   1.   If the person is staying alone
   2.   If the applied amount for loan is very high
   3.   For self employed business
   4.   For software professionals if the applied amount of loan is grater than Rs.
         3, 00,000/-
                           INTREST STRUCTURE

                               PERSONAL LOANS
             Salaried Individuals          16% - 23%
             Relationship Rewards
                                           16% - 22%
             Track Record/Special
                                           18% - 26%
             Surrogate Programs
             Processing fee for Regular
             Processing Fee for
             Relationship Reward           2%
             Processing Fee for loan
                                           Rs. 20
             amount less than Rs. 100000
Disclaimer - The rate of interest mentioned above are the standard and average
rates under standard income criteria for each class of borrowers and shall be
higher/lower depending on the parameters which are met by the customers. They
would also vary by tenor. These rates are currently applicable and can be changed
any time from time to time, at the sole discretion of ABN AMRO Bank and
without any prior or post notice to the customer and such changes shall be final
and binding on all customers of ABN AMRO Bank
Personal Loan Approval Stages

        Marketing Executive

                                  Checking Documents
                                     Initiating Verification
                          {Crystal Info Services (P) Ltd.

  Central Processing Agency

        Credit Department

        Approval / Decline

   Post Approval Documents

Delhi                 Disbursement
After a file is logged in by the Marketing Executive, the Coordinator checks
the documents and also initiates the Verification. Verification is done by an
external agency 'Crystal Info Services Pvt. Ltd." The Verification is done by
a surprise visit to the applicant’s residence and office premises, subject to
a maximum of 3 times. Once the verification is done by the agency the
report is submitted to the credit department.

      Meanwhile, the documents submitted by the applicant are being
forwarded to the Central Processing Agency (CPA), which checks the
details of the documents for processing. This work is also given to an
external agency 'Lovelock & Lewis Pvt. Ltd.'.

      The two external agencies submits their report to the Credit
Department, which actually decides for Approval/Decline of the case, for
further processing. The details of the report are put into a programme that
calculates the maximum sanctioned amount for the loan.

      Once the loan is approved, the Cheque is disbursed to the applicant
and the documents are sent to Delhi Office.
                         Guideline Notes on Norms

Eligibility Criteria:

   1,      Age - Needs to be ascertained from Date of Birth as given in the
           address proof or the ID proof or the SSC Certificate.

   2.      Loan Eligibility - Multiplier to Net Income

   3.      Number of years in present/previous job/ business - it is very
           important norm, which helps assess the stability of the applicants
           career and also the regularity of the incomes for repayments of
           the loan.

   4.      Salary - The minimum requirement of Salary of the applicant is
           set to Rs. 1, 00,000/- only.

   5.      Telephone - a landline telephone connection is compulsory for
           every Scheme except for the Salaried applicants, for which a
           mobile connection will do along with the latest mobile bill.
                    Contact Point Verification Policy
Contact Point Verification Policy (CPV) is a very important part of the
Approval process.
    To ensure that the information is accurate
    To enable the credit officer to construct a profile of customer for
      credit evaluation
    To select and eliminate fraudulent applicant

    To establish identity of the borrower, ascertain and reconfirm his
      residential and office address, length of stay and stability, and match
      them with the information given by the applicant in the application

    Residence verification is an external input to evaluate the standard
      of living of the applicant's household in terms of his visible quality of
      life indicators like T.V., Refrigerator, AC, Music System etc.

    The office verification will reconfirm the name and address of his
      employer and his designation in the company. In case of self
      employed Professional/Businessman, the office CPV will provide
      data on number of years of business, employees in the company,
      size and location of the office etc.

Contact Point Verification is an aid to, and not replacement or a
substitution to credit evaluation process. A positive CPV does not
guarantee Credit Approval.
Division of files according to Programs



  No. of Files

                 20                                                                                       Series1
                 15                                                                                       Series3



                      Relationship   Top Up   Balance      SEVI         Self       Salaried   Surrogate
                       Rew ards      Scheme   Transfer               Employed      Program     Program

                       List of approved companies

ABN AMRO BANK has 7500 companies listed with them for the personal
loan scheme. We can give loan only to the employees who are working in
these companies. These companies are listed according to their past
performance, track record, profit earned in the past years, number of
employees working there etc.

    The new company that has to be listed should first give the details of
the requirements. Once the company is listed, the employees can apply for
personal loan.

                                  CASE STUDY

Name: Siddharth Dixit

Date of Birth: 25-07- 1975

Gender: Male

Martial status: Married

Existing Relationship: NO

Residential Address: Pl no 22, Purnanand Soc, Sadashiv Peth, Pune: 411030

Name of Buiseness Entity: Sanchi Silk

Business Address: Laxmi Road, Pune 411012

Proprietor Name: Siddharth Dixit

No of years in Business: 12 yrs

Telephone No: 24216545

Mobile No: 9860542165

Residence Type: Self

Live in the city of Residence for: since Birth

Live in the current residence for: 10 yrs

Detail of Spouse:
Name: Yogini
Occupation: House Wife

Number of Dependant: 2

Surrogate Loan 1: HDFC Bank

Type of Loan: Auto Loan
Monthly EMI: 22550

No of EMI Paid: 15

Current Loan Rate: 20%

You want a loan of RS: 5, 00,000

Banking Relationship Detail

Login Documents Provided:
                     1) Application Form
                     2) Pan Card
                     3) MSEB Bill Xerox
                     4) Telephone Bill Xerox Of Sanchi Silk
                     5) Renewal Shop Act
                     6) EMI reflected banking only, Bank A/c Statement,
                        Current A/c from Janata sah Bank
                     7) Welcome Letter
                     8) Repayment Schedule
                     9) 2 References who knows the applicant their telephone
                        no , Residential Address
                     10) Photograph

Customer attestation is compulsory on each document; Sign behind the
Photograph is must.
                                   STEP 2

                       After the file logd in properly it went to Contact Point
                       Verification for Telephone Verification Then it is
                       initiated as Telicalling Ok

Additional Document Required:
                     ITR Copy of 2002, to see Income from Business &
                     Profession the case is under self employed. For business
                     continuity the 2002 copy demanded.

                       After it went to credit Then Physical verification was
                       VR done at Residence, Resi Owned, Prime Location, Met
                       VR done at Office, Met the Staff, Prime Location prop
                       conformed, set up activity seen.

                       Then CIBIL Report Checked, CIBIL report is Credit
                       Information Bureau India Limited Report.

                       CIBIL: All information Contained in this credit report
                       has been collated by Credit Information Bureau India
                       Limited based on information provided by its various
                       members .Consequently CIBIL disclaims any and all
                       responsibility on the accuracy, completeness, and
                       veracity of any and all such information provided. The
                       information is current and up to date to such extent as
                       provided by its members. Any information contained
                       herein does not reflect the views of CIBIL or its directors
                       or employees.
                       The use of this report is governed by the terms and
                       conditions of rules for CIBIL and its members.CIBIL
                       report gives details about All MNCS Loans & Credit
                       Cards History.
                         After found Target Loans reflect in CIBIL with Clear
                         track. It will go to Eligibility, and then it will process for

                         Disbursement Documents Required:
                               A. Agreement
                               B. New Application Form ( NO Correction,
                               C. Applicants Photograph
                               D. Post Dated Cheque 60 cheque
                               E. If its ECS then 9 cheques required for security
                               F. ECS done by the Bank only which submitted
                                  in primary Level.
                               G. If the Cheque given by current a/c then Sole
                                  Proprietor Declaration is require

Applicant Loan Eligibility: 20, 00,000

Applicant Sanction Loan: 5, 06,000

Rack Intrest Rate: 19%

Processing Fee: 2%

Tenure: 60 Months

Program: Surrogate Self Employed Auto Loan

EMI: RS.11, 133.00

Advance EMI: 0


ABN AMRO BANK has successful lead on personal loan market .Moreover they
working for customer satisfaction .Bank very much stuck to the policy , the policy
is not flexible to everyone it mainly concentrate on Higher middle class group and
Mass public. Bank mainly deal with surrogate program it will go through the
process very soon as compare to other.

Basically CREDIT ANALYSIS is a programmed carried out by Banks to
Minimized the Risk involved to lending money .Credit appraisal intention is to
verify Financial soundness & his repayment capacity, to check MCNF (Master
Card Negative Feedback) and very important is CIBIL report.





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