DRO INDUCTION PHASE-2 2024 RETAIL CREDIT ASSESSMENT

Fill in the blanks: As per guidelines, Bank allows to include additional cost (including GST) upto maximum _____ of cost of flat/villa subject to vetting by empanelled valuer and other stipulated compliances

• 0.2
• 0.45
• 0.18
• 0.27

Answer explanation

The Bank of Baroda allows the inclusion of additional costs in the project cost of a home loan up to a maximum of 45% of the cost of the flat or villa. This is subject to vetting by an empanelled valuer and compliance with specific conditions. The breakdown includes 18% for GST on the purchase of the flat and up to 27% for other cost items such as township corpus fund, development charges, one-time generator charges, infrastructure cost, club house membership charges, electricity/water/sewerage board one-time charges/deposits, cost of rooftop solar photovoltaic systems, and costs as per additional work agreements. Only costs invoiced by builders or contractors are accepted

For a home loan application with applicant's CIBIL score being 761 (male applicant aged 41 years and opting for credit life insurance), if agreement value plus additional work cost is Rs. 200 Lakhs and realizable value of said property is Rs. 220 Lakhs, then what will be the proposed non CRE home loan amount and applicable ROI without any other concession on said loan limit under ongoing Campaign?

• Rs. 165 Lakhs, 8.70%
• Rs. 180 Lakhs, 8.70%
• Rs. 180 Lakhs, 8.60%
• Rs. 165 Lakhs, 8.60%

Answer explanation

LTV based on RV of property is Rs. 165 Lakhs, max amount as per margin norms is Rs. 180 Lakhs, therefore proposed loan amount is Rs. 165 Lakhs; also, proposed amount is 82.5% of project cost, therefore additional 0.10% ROI applicable, card rate for CIBIL 761 is 8.60%, so proposed ROI is 8.70%

For a home loan application from a salaried applicant, if monthly gross incomes for consecutive 3 months are Rs. 120000/-, Rs. 123000/- and Rs. 120000/- (latest) respectivelty and payslip deductions for same months are Rs. 22000/-, Rs. 24000/- and Rs. 20000/- (latest) respectively and he pays personal loan EMI of Rs. 11000/- per month, what will be amount available for EMI deduction towards proposed home loan?

• Rs. 59700/-
• Rs. 54650/-
• Rs. 53350/-
• Rs. 58300/-

Answer explanation

Avg NMI Rs. 99000/-, applicant salaried, FOIR 65%, EMI deduction Rs. 11000/-, available amount for EMI deduction Rs. 53350/-

Which of the following may be classified under Priority Sector Lending in Home Loan segment?

• In other than metropolitan centres, loans to individuals upto limit of Rs. 35 Lakhs subject to oevrall cost of dwelling unit being upto Rs. 45 Lakhs
• In metropolitan centres, loans to individuals upto limit of Rs. 25 Lakhs subject to oevrall cost of dwelling unit being upto Rs. 30 Lakhs
• In other than metropolitan centres, loans to individuals upto limit of Rs. 25 Lakhs subject to oevrall cost of dwelling unit being upto Rs. 35 Lakhs
• In metropolitan centres, loans to individuals upto limit of Rs. 35 Lakhs subject to oevrall cost of dwelling unit being upto Rs. 45 Lakhs

Answer explanation

Loans to individuals up to Rs 35 lakh in metropolitan centres (with population of ten lakh and above) and up to Rs 25 lakh in other centres for purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs 45 lakh and Rs30 lakh respectively.

Loans up to Rs 10 lakh in metropolitan centres and up to Rs 6 lakh in other centres for repairs to damaged dwelling units conforming to the overall cost of the dwelling unit

Fill in the Blanks: In Baroda Home Suvidha Personal Loan Category-B, the charge on the mortgaged property will be ___________ charge after linked Home Loan

• Paripassu
• 2nd/ subservient
• First and Exclusive
• None of the above

Answer explanation

For Baroda Home Suvidha Personal Loan under Category-B, the security guidelines specify that an extension of the mortgage must be created.

The charge on the mortgaged property will be a 2nd/subservient charge following the linked Home Loan.

This means that in the event of a default, the Home Loan will be prioritized for recovery up to 100%, and only the remaining amount will be used to recover the Baroda Home Suvidha Personal Loan^[

Which Home Loan borrowers are included under Baroda Home Loan Group Personal Accident Insurance Policy with National Insurance Co. Ltd.?

• Home Loans borrowers {All variants including additional / Improvement / top-up Loans etc. (by whatever name called)} sanctioned on or after 10.09.2012 upto 31.12.2022
• Home Loans borrowers {All variants including additional / Improvement / top-up Loans etc. (by whatever name called)} sanctioned before10.09.2012 and after 31.12.2021
• Home Loans borrowers {All variants including additional / Improvement / top-up Loans etc. (by whatever name called)} sanctioned on or after 10.09.2012 upto 31.12.2021
• Home Loans borrowers {All variants including additional / Improvement / top-up Loans etc. (by whatever name called)} sanctioned on or after 30.09.2012 upto 31.12.2022

Which of the following is NOT a necessary eligibility criteria for Baroda Home Loan to Corporate?

• The company/firm should be incorporated for at least 5 years
• Adjusted Tangible Net Worth of the Company/firm should be minimum Rs. 1 Lakh
• The Company/firm should be actively engaged in business activities for at least 2 years
• The Company/firm should be earning the cash profits for last 2 years

Answer explanation

I. Type of applicants –

 Public Limited Company

 Pvt. Ltd. Company

 Partnership Firms

 LLPs

II. The Company/firm should be incorporated for at least 5 years.

Ill. The Company/firm should be actively engaged in business activities for atleast 2

years.

IV. The Company/firm should be earning the cash profits for last 2 years.

V. Adjusted Tangible Net Worth of the Company/firm should be positive.

VI. The Company/firm should not have slipped into SMA-1 / SMA-2 category during

last 12months)

VII. The CIBIL of the Company/firm should be satisfactory.

VIII. The name of the Company/firm/directors/partners/parent company should

not be adversely reported in RBI defaulter's list, ECGC Caution list/SAL, Suit filed/

Non Suit filed CIBIL list CRILIC etc.

Fill in the Blanks: Our bank is presently offering Top up Loan to Home Loan borrowers as __________

• Term Loan
• Demand Loan and Term Loan
• Demand Loan, Term Loan and Overdraft
• Demand Loan

Second Valuation Report from other empanelled valuers approved by the Bank shall be obtained (for all type of proposals C&lC, MSME, Retail and Rural & Agri) in case the Realizable Value of the first Valuation Report exceeds the threshold mentioned below -

• Above 5 Crores for industrial properties situated in Metro Cities including Bangalore, Hyderabad, Ahmedabad & Chandigarh Tri-city
• Above 1 Crores for agricultural properties situated in Metro Cities including Bangalore, Hyderabad, Ahmedabad & Chandigarh Tri-city
• Above 2 Crores for commercial properties situated in Metro Cities including Bangalore, Hyderabad, Ahmedabad & Chandigarh Tri-city
• Above 5 Crores for residential properties situated in Metro Cities including Bangalore, Hyderabad, Ahmedabad & Chandigarh Tri-city

Answer explanation

Retail handbook page no 27-28

For a home loan application with applicant's CIBIL score being 750 (42 YO female applicant of radiance segment and not opting for credit life insurance), if agreement value plus additional work cost is Rs. 320 Lakhs and realizable value of said property is Rs. 350 Lakhs, then what will be the proposed home loan amount and applicable ROI on said non CRE home loan limit without any other concession under ongoing Campaign?

• Rs. 262.50 Lakhs, 8.75%
• Rs. 288 Lakhs, 8.80%
• Rs. 288 Lakhs, 8.75%
• Rs. 262.50 Lakhs, 8.90%

Answer explanation

LTV based on RV of property is Rs. 262.50 Lakhs, max amount as per margin norms is Rs. 288 Lakhs, therefore proposed loan amount is Rs. 262.50 Lakhs; also, proposed amount is 82.03% of project cost, therefore additional 0.10% ROI applicable, card rate for CIBIL 750 is 8.85%, concession for radiance is 0.10% and for women borrower is 0.05%, so proposed concession is higher of the two i.e. 0.10% and additional risk preimum is 0.05%, proposed ROI is 8.90%