Opportunities

Where can you apply your strengths?

How are your customers and their needs changing?
How is technology changing your business?
Are there new markets for your strengths? (e.g. foreign)
Are there new ways of producing your products?
Are your rivals' customers dissatisfied?
Threats
Are customers able to meet their needs with alternative products?
Are customers needs changing away from your product?
What are your competitors developing?
Are your rivals improving their product offerings or prices?
Is new technology making your product obsolete?
Is your cash-flow and debt position healthy?
Are your employees satisfied?
Is turnover high?
Is new competition coming?
Are sales growing slower than the industry average?

Page 1
POINTS TO REMEMBER FOR RETAIL

1. APPLICATION & RATING SHEET

2. KYC & CREDIT INFORMATION REPORTS
3. FINANCIALS
4. VALUATION/PROPERTY VISIT
5. LSR/LSR CHECKLIST
6. PROPERTY DOCUMENTS
7. CLAPS SANCTION

Page 2
1. APPLICATION & RATING SHEET

• APPLICATION TO BE FULLY FILLED

• Saving A/c no. & Contact no.
• Net worth (Try to take proof of assets shown)
• Business/Profession Details (Must match with details
mentioned in Computation of ITRs)
• Tenure of loan/holiday period
• Other particulars in last two pages.
• DO WRITE “FORWARDED & RECOMMENDED FOR SANCTION
TO RAH MEERUT” SIGNED BY BRANCH INCHARGE ONLY
• RATING SHEET
• Name & SP no. of Official Signing. (NF 990) (Min score
should be 70%)
Page 3
2. KYC & CREDIT INFORMATION REPORTS

•Signed & Verified Copies of KYC.

•Try for maximum KYC proof.
•Insist for Voter specially Village Customers
•Credit reports should be latest
•Input all the details of KYC documents available while
generating report.
•If any loan appearing in reports –Details of EMI along with
loan account statement.

Page 4
CREDIT INFORMATION REPORT
Refer HO Cir 162/2018
Risk Risk Transunion CRIF Equifax Experian
Grade Description Cibil
CS : 1 Low Risk 900-825 900-784 900-724 900-850
CS : 2 Fair Risk 824-775 783-757 723-676 849-800
CS : 3 Normal Risk 774-750 756-720 675-654 799-775
CS : 4 Moderate Risk 749-700 719-702 653-615 774-750
CS : 5 High Risk 699-300 701-300 614-300 749-300

CIR can be extracted from any two credit companies

In case of HL: > 10 Lakhs
In case of VL: > 5 Lakhs
In case of OPL and EL: Secured: >5 Lakhs
In case of EL : Unsecured: > 4 Lakhs
Page 5
CREDIT INFORMATION REPORT (Contd…)

•In case of TransUnion CIBIL, there are 3 scores viz., TransUnion Score
Version 1, TransUnion Version 2 and Personal Score. However,
TransUnion Version 2 Score shall be reckoned.
•Credit scores of Applicant & Co-Applicant shall be taken into
consideration for assigning risk grade. In case of variation in the
scores of the applicant or Co applicant, the lowest of the three digit
scores among all the CIRs obtained shall be taken as the basis for
assigning risk grade.
•The acceptable risk index is 3 and above. Depending upon the
standing of the party, proposals having risk index less than 3, may be
referred to next higher authority for sanction.
Page 6
CREDIT INFORMATION REPORT (Contd…)

Further, if a score of -1 is displayed in the TransUnion

CIBIL report, it shall be interpreted as the individual has
no credit history available in the last 24 months. Such
proposals shall be processed as a New Credit Customer,
and normal sanctioning powers shall be exercised and
the scoring norms shall not be applicable.

Page 7
3. FINANCIALS

NON SALARIED INDIVIDUALS

•ITR OF LAST THREE YEARS. (Insist for ITR AY 2017-18) along with
Computation.
•Acknowledgment of ITR’s. (If not Verified Online.)
•Balance Sheet/P & L a/c if available.(Mandatory in case of loan is in
the name of firm or company).
•If financials not available- Do send the visit report of workplace or
confirm us in covering note -the visit of workplace and ensure us the
genuineness/creditworthiness. (Not in all cases but in those where it
seems that maintaining of books of accounts in not feasible).
•Saving a/c statement of last 1 year for bank other than our Bank.
Page 8
3. FINANCIALS

SALARIED INDIVIDUAL
•Form 16 for last three AY years. (If this is available then
ITR not compulsorily required)
•Salary slips for at least 4-6 months.
•Salary account statement of last 1 year.
•ID card from Employer.
•If in Private Job- Certificate from employer that the
employee is confirm employee and working with us since
XXXX.

Page 9
4. VALUATION/PROPERTY VISIT

Signed property visit report. (Attach photographs

from three sides of property, with officials and
applicant).
Valuation report. (Ensure date of visit of valuer is
mentioned in report).
PRE SANCTION VISIT AND VISIT ON COMPLETION (IN
CASE OF CONSTRUCTION LOAN) IS MUST.

Page 10
5. LSR/LSR CHECKLIST
•LSR Checklist is to be signed by Branch Head Only.
(Also mention the Name and Designation of Signing
Official).
•Details of Property is to mentioned in LSR Checklist.
•LSR- Ensure - Date on every certificate of LSR and
Certificate of applicability of SARFAESI Act.

Page 11
6. PROPERTY DOCUMENTS
These Documents are Must-
•Title deeds along with chain covering minimum last 13
years.
•NEC for last 13 years.
•Xerox of certified/original copies of sale deed falling in
last 13 years.
•Approved Map from Competent Authority (if applicable)
•If ready built house or shop- then House tax
receipt/property tax receipts in the name of owner.

Page 12
7. CLAPS: Canara Loan Application Processing
System

HO CIR- 27/2017 dated 10/01/2017 & 27/2017 dated

10/01/2017
Complying with the HO Guidelines, All Branches are
requested to send the proposals only after processing the
same in CLAPS Package.

Help Desk Number : 080 22170400

Contact- Advances Section RO Meerut for your User Id and
Password.
Page 13
RETAIL SANCTION IN CLAPS

•Two passwords needed for entry of loan

application in CLAPS- maker (Clerk/Officer) and
checker (Primary Officer).
•Data entry shall be done by Maker. Retail Loans->
DDE-> Enter. “QDE” should not be used for data
entry.
•Various tabs will be opened to maker for data
entry.
Page 14
RETAIL SANCTION IN CLAPS

•Ist Tab: MAIN APPLICANT- Data will be fetched

from CBS server. However, in case of any
discrepancy, details can be changed accordingly in
CLAPS.

•IInd Tab: OTHER APPLICANT- Data will be fetched

from CBS server. However, in case of any
discrepancy, details can be changed accordingly in
CLAPS. Page 15
RETAIL SANCTION IN CLAPS

•IIIrd Tab: EMPLOYMENT DETAIL- Employment

details are to be entered in this tab for both
applicants.
•IVth Tab: INCOME AND BANK DETAILS- Some
details will be fetched from CBS a while some have
to be entered for both applicants.
•Vth Tab: ASSET AND LIABILITY DETAILS- Assets
and liability details should be entered for both the
applicants. Page 16
RETAIL SANCTION IN CLAPS
•VI th Tab: LOAN DETAILS- Type of loan (HL/VL/CR/CM),
project cost, address of the property etc have to be entered
in this tab.
•VIIth Tab: SECURITY ENTRY- Details of security like value
of the land and building to be entered.
•VIIIth Tab: REFERENCE DETAILS- System asks for two
references contacted for enquiry during property visit.
•IXth Tab: MIS CODE DETAILS- MIS code details to be
entered as BAM83 in CBS.
•Xth Tab: BENEFICIARY DETAILS- need not to be entered
and application to be submitted by clicking on “Submit”
button. Page 17
RETAIL SANCTION IN CLAPS (Contd…)

•The application then goes to primary officer of the branch and the
activities open up automatically to be completed by primary officer
like Rating sheet, generation of CIRs, updation of valuation report,
property inspection etc.
•Now three activities get spawned through work list as under:
Receive Fees
Receive Documents
De dupe
•Out of the above, the Loan Processor of the branch is required to
complete Dedupe activity.
Page 18
RETAIL SANCTION IN CLAPS (Contd…)

•As such at the stage where the application has the

following activities the application need to be pushed
to the RAH
•Receive Fees
•Receive Documents
•Initiate Credit Check

Page 19
RETAIL SANCTION IN CLAPS (Contd…)
Procedure to forward application to RAH
•For pushing to RAH, the following needs to be done:
Go to Retail Loans -> Change Primary Officer
Application count against each of the primary officers are listed
Click on the Primary officer who has attended to the above application
Application details are listed beneath.
Click on the Radio button against the current application
Choose the Primary officer of the RAH to whom the application needs to be
assigned (presently 94102- Abhaya)
Click Save
The application moves to RAH
•Send a physical copy of the application duly recommended and signed by branch-
In-charge along with the signed copy of rating sheet and other supporting KYC
documents to RAH to enable them to process further at RAH.
•Sufficient balance for processing fee and all charges should be available in the
operative account of the borrower. Page 20
GENERAL POINTS
1. In Case Sale deed or Transfer is older less than 1 year,
then value of property will be considered only the value
mentioned in sale deed. (Housing – Purchase/ Canara
Mortgage/Education- Prime Security or Collateral).
2. In Housing loan, for loan quantum & NTH , Only Father
Mother, Spouse, Son and Unmarried Daughter can be
added with applicant. Cir 282/2017 (Applicant means
property owner).
3. Strictly if brother sister are not applicant than they
can’t be added.
4. Latest CERSAI search report.
5. In Canara Vehicle, Only Spouse can be added for NTH.
Page 21
Eligibility Norms – Housing Loan

•NTH – 25% (Subject to minimum of Rs. 10,000/- per

month).
•Non Salaried –
NTH = Income as per ITR – (Tax payable) – (EMI for
Existing loan) – (EMI of Proposed Loan).
•Salaried
NTH = Gross Salary – ( Deduction-PPF/GPF etc) – (Tax
payable) – (EMI for Existing loan) – (EMI of Proposed
Loan).
•Max Amount – 4 Times of Gross Income/Salary
(Relaxation up to 5 times) Page 22
Eligibility Norms – Vehicle Loan

New Vehicle – Four Wheeler

NTH – 25% of Gross Income/Salary
& Rs. 12,000/- per month.
(Criteria of Calculation- Same as in last Slide).
Max Tenure – 7 Years.
New Vehicle – Two Wheeler
NTH- Minimum Rs. 75,000/- Annually
Quantum- Max. 50% of Gross Income.
Margin- 25% of non salaried/20% in salaried
Page 23
Eligibility Norms – Vehicle Loan
Old Vehicle – Four Wheeler
Tenure- Max 5 years.
Margin- 25%.
Vehicle should not be more than 5 years old.
Loan Amount- Max. Rs. 15.00 Lakhs
Old Vehicle – Two Wheeler
CAN NOT FINANCE
Note: In case of Second Car loan by same customer
from our bank then the sanctioning authority is
Next Higher Authority. Page 24
Eligibility Norms – Canara Mortgage
•NTH- 20% & Rs. 20,000/- per month.
•Max Amount- 50% of Market value of Property.
•Can not do if the property is already mortgaged with us.
•Can give additional CM, HL and EL against the same
property on spillover value if property already mortgaged
under CM.
•If property is already mortgaged in EL/HL/Loan/Limit, than
Canara Mortgage can not be sanctioned.
•Plot and fully rented property can not be mortgaged.
•Max- 7 years.
•No relaxation of any kind except tenure of 10 years –
sanctioning power for the same is GM CO CAC Page 25
Eligibility Norms – Education Loan

•Can not finance Graduate Diploma/Certificate Course.

•Aadhar card of Student compulsory.
•60% in previous exam passed.
•Unconditional Offer Letter. (condition of finance can be
ignored).
•No NTH issue.
•Income of parents does not matter. (But ensure they
are earning enough to pay the interest on time).
•Rating sheet not required.

Page 26
Eligibility Norms – Canara Rent
•Purpose- Business or other genuine needs.
•Can be given to owner whose property is rented/to be
rented to PSU/State/Central Govt./ FI-Banks/MNCs.
•To existing customer/Non Customer with OPL.
•Quantum- 75% of Gross rent receivable for the unexpired
lease period- less (TDS and Advance Rent received)
•Security- EMT of that rented/leased property- 100%
security.
•Repayment – up to 60 months.
•Product Code - 606

Page 27
Eligibility Norms – PMAY
Eligibility-
1. If plot already owned- loan for construction- Title of male/female
does not matter.
2. Not owing of any pucca house in name of any family member
throughout India.
3. Family should not have availed central assistance under any housing
scheme from GOI.
4. Max tenure- 20 Years – Max. Holiday time-18 Months
Product Code - 630
Regarding Subsidy the same is decided firstly on income basis and then
on area basis. Disbursing branch to claim subsidy in excel sheet
specifically designed for each category (EWS/LIG/MIG-I/MIG-
II)forwarded to CO Delhi through RO Meerut and inturn to HO
Bangalore. Page 28
RATE OF INTEREST AS ON 20/07/2017
HL- Refer HO CIR no. -279/2017 dt 06/06/17
CV- Refer HO CIR no. -280/2017 dt 06/06/17
CM- MCLR + 3% - 185/2016 dated 01/04/2016
EL- MCLR +1.50% –Boys, 0.50% Concession-Girls (449/2017
dated 11.09.2017 )
CR- HO Cir 441/2017
MCLR+ 1.80% (leased to our bank)
MCLR + 2.00% (Navratna Companies)
MCLR + 2.30% (Other Companies)

PRESENT MCLR- 8.40% as per HO CIR 211/2018

Page 29
DOCUMENTATION

HOUSING LOAN-
•Application – NF964
•AGREEMENT- NF 981
•GUARANTEE AGREEMENT FOR HL- NF 982
•GUARANTEE COVERING- NF 371
•SPECIMEN SIG. CARD- NF 546
•LEDTD- NF461, 462 (SCHEDULE A OR B)
•Disbursement letter, Irrevocable Mandate, Physical Possession
Letter, Undertaking of construction, MCLR related Annexure
•Stamp Paper:- Rs. 100/- + EMT stamp paper (0.5% of loan amount or
Rs. 10000/- whichever is less)

Page 30
DOCUMENTATION
CANARA MORTGAGE
•Application – NF964
•AGREEMENT- Term Loan Agreement
•GUARANTEE AGREEMENT - NF 370
•GUARANTEE COVERING- NF 371
•SPECIMEN SIG. CARD- NF 546
•LEDTD- NF461, 462 (SCHEDULE A OR B)
•Disbursement letter, Irrevocable Mandate, Physical
Possession Letter, Undertaking ,MCLR related Annexure
•Stamp paper – Rs. 100/- + EMT stamp paper (0.5% of
loan amount or Rs. 10000/- whichever is less)
Page 31
DOCUMENTATION
CANARA VEHICLE
•Application – NF965
•AGREEMENT- NF 928
•HYPOTHECATION – NF 373
•GUARANTEE AGREEMENT- NF 370
•GUARANTEE COVERING- NF 371
•SPECIMEN SIG. CARD- NF 546
•RTO FORMS-FORM 20, 29,30, 35(FORM 34 IN USED
Vehicle)
•Disbursement letter, Irrevocable Mandate, Physical
Possession Letter, Undertaking ,MCLR related Annexure
•Stamp paper – Rs. 100/- + Rs. 100/- for Guarantee Page 32
Page 33
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Primarily,
SWOT analysis helps us better recognize the best opportunities for a business, as
well as the potential pitfalls.
What do each of these categories mean? Strengths and weaknesses are internal
categories. They look at the structure and integrity of your business. Opportunities
and threats are external factors.
– Strengths are things a company excels at, things that sets a company apart from
its competitors – a loyal customer base, strong employee culture and so on.
– Weaknesses are internal factors that are keeping a company from reaching its full
potential. This can include debt, high turnover rates in employees and low capital.
– Opportunities are positive chances the company has externally to gain
a competitive edge.
– Threats are external factors that have the potential to harm a business. Things like
a shortage of materials, decrease in labor supply, a new competitor and others.

Page 34
We can conduct the SWOT analysis by answering the group of similar questions (depending on the context or nature of the problems
you would like to solve) for each of the four components:
Strengths
Identify skills and capabilities that you have.
What can you do particularly well, relative to rivals?
What do analysts consider to be your strengths?
What resources do you have?
Is your brand or reputation strong?
Weaknesses
What do rivals do better than you?
What do you do poorly?
What generates the most customer dissatisfaction and complaints?
What generates the most employee dissatisfaction and complaints?
What processes and activities can you improve?

Page 35
 Ways to Grow Your (Our) Retail Loan Portfolio
1)Cultivate cross-sell opportunities. One of the easiest and most steady sources
of new business and related revenue is to reach out to current customers for
additional business. Some of your best prospects for commercial loans might be
right under your nose. It’s not uncommon for businesses to utilize one bank for
services like treasury management and merchant services and another for loans.
If you have business service customers who aren’t borrowing money from your
bank, arrange a meeting to talk with them about any potential financing needs
they may have.
Scrutinize your customers’ financial statements. You may already have the
information necessary to determine your customers’ needs. Reviewing financial
information provided by your customers may allow you to identify areas of need.
For instance, if your customers’ balance sheet shows levels of accumulated
depreciation in excess of the net book value of fixed assets this may indicate a
possible need for your customer to purchase new equipment or fixed assets.

Page 36
Important Contacts:
•Vetting Agency:- Genuine Verification Services -
pradeep@genuineservices.co.in
•CIBIL Creation:- cibil@canarabank.com/
allcics@canarabank.com
•Commercial CIBIL Reset:-
•Equifax Creation:- https://eport.equifax.co.in/
allcics@canarabank.com
•CRIF Creation:- allcics@canarabank.com
•CIBIL/Equifax Reset:- In Website Only
THANKS Page 37