The document outlines the long-term loan policy of Kapol Cooperative Bank Ltd. It discusses various types of long-term loans offered by the bank such as housing loans, vehicle loans, educational loans, and loans against shares. Most of the loans have a repayment period exceeding one year and require substantial margin money ranging from 25-50%. The bank provides both secured and unsecured loans for purposes such as home buying, education, and business development. A graphical representation shows that the bank's long-term loans disbursed have increased from 2007 to 2012.

1. Long-term Loan Policy
Kartikey Jain
866
BBA LLB (Hons.)
VI Semester

2. Introduction
• The Main objective of the Bank is to service the downtrodden and economically
weaker sections of the society
• The Business growth is given as under -
• Established in 1939
• 67963 Shareholders
• Dividend @ 10%
• Fully computerized 15 branches and Departments all interconnected (CORE
BANKING).
• The Winners of "PIONEERS IN CORE BANKING"
• Customers over 250000
• Audit rating 'A'
• Staff 395

3. • OTHER DETAILS ARE -
• The Bank introduced PAN CARD facility
• The Bank has tied-up with Corporation Bank e-Tax Payment system
• The Bank has introduced Franking facility for Document Stamping.
• The Bank has tie-up with Max Life Insurance for life insurance products.
• The Bank was the first to introduce the new concept of "COUNTER LESS BANKING".
• The Bank is amongst the first to introduce DEMAT SERVICES in May 1999. It has an active client base
of over 24000.
• The Bank achieved "SCHEDULED BANK STATUS" in January, 1998 and "MULTI-STATE" status on
9th August, 2000 with area of operation extended to Ahmedabad and Surat Districts in Gujarat State.
• The Bank has 14 branches in Mumbai and one branch in Surat which are fully computerized.
• The Bank has provided ATM facility at Vile Parle (West), Malad (W), Picket
Road (Kalbaddevi) , Mulund (W) and Kandivali (W) Branch and is in the process of providing ATM
services at one more branch.
• CORE BANKING SOLUTION : The Bank has established its Core Banking Solution and
interconnected all its Branches and ATMs to provide quick & quality services to the customers which
facilitates "ANY WHERE AND ANY BRANCH BANKING".
• RTGS & NEFT : The Bank is an active member of "RTGS / NEFT" introduced by the Reserve Bank of
India.

4. Long-term Loan
• Long-term loan is a form of debt that is paid off over an extended time frame
that exceeds one year in duration.
• It is a monetary loan that is repaid in regular payments over a set period of time.
• Long-term loans usually last between one and ten years, but may last as long as
30 years in some cases. It usually involves an unfixed interest rate that will add
additional balance to be repaid.

5. Loans
DEFINITION OF LOAN
The act of giving money, property or other material goods to a another party in exchange for
future repayment of the principal amount along with interest or other finance charges. A
loan may be for a specific, one-time amount or can be available as open-ended credit up to
a specified ceiling amount.
TYPES OF LOANS
1. Secured Loans: A secured loan is a loan in which the borrower pledges some asset as
a collateral. Ex: Housing Loans
2. Unsecured Loans: Unsecured loans are loans that are not secured against the
borrower assets.

6. Loan Schemes of Kapol Cooperative
Bank Ltd.
• Housing Loan
• Consumer Durables Loan
• Educational Loan
• Computer Loan
• Vehicle Loan
• Personal Loan
• Loan/OD against Shares/Debentures/PSU Bond
• Term Loan

7. Housing Loan
Type Of Facility Housing Loan
Maximum amount Rs.70.00 lakhs
Rate of interest •12.00% p.a. up to Rs.5.00 lakhs
•12.50% p.a. above Rs.5.00 lakhs
Maximum repayment
period
240 months
EMI for Rs.1.00 lakh •12.00 % P.A.
•12.00 % P.A.
Margin 25% on agreement value
Eligibility Professionals, businessman, salaried
employees
and self employed
Purpose To purchase ownership flat.
•

8. Consumer Durables Loan
Type Of Facility Consumer Durables Loan
Maximum amount Rs.2.00 lakhs
Rate of interest 16.50% p.a.
Maximum repayment
period
60 months
EMI for Rs.1.00 lakh Rs.2,458/-
Margin 25% on value of proforma invoice /
Quotation
Eligibility Professionals, businessman, salaried
employees
and self employed
purpose To purchase consumer durables

9. Educational Loan
Type Of Facility Educational Loan
Maximum amount Rs.10.00 lakhs for education in India
Rs.20.00 lakhs for education abroad
Rate of interest 14% p.a.
Maximum repayment period 60 months (max) with moratorium period of 6
months (max)
EMI for Rs.1.00 lakh Rs.2,327/-
Margin 25% on total education fees
Eligibility Students,Professionals,businessman,salaried
employees
and self employed
Purpose For higher education

10. Computer Loan
Type Of Facility Computer Loan (For Personal Use)
Maximum amount Rs.1.00 lakh
Rate of interest 15% p.a.
Maximum repayment
period
36 months (max)
EMI for Rs.1.00 lakh Rs.3,467/-
Margin 25% on value of proforma invoice /
Quotation
Eligibility Professionals, businessman, salaried
employees
and self employed
Purpose To purchase computer for personal use

11. Vehicle Loan
Type Of Facility Vehicle Loan (Two Wheeler)
Maximum amount Rs.0.75 lakh
Rate of interest 13.50% p.a.
Maximum repayment
period
60 months (max)
EMI Rs.1,726/-
Margin 25% on value of proforma invoice /
Quotation
Eligibility Professionals, businessman, salaried
employees and self employed
Purpose To purchase two wheeler

12. Type Of Facility Vehicle Loan (Four Wheeler For Personal Use)
Maximum amount Rs.50.00 lakhs
However, eligibility subject repaying capacity.
Rate of interest 13.50% p.a. for Brand new vehicle
Maximum repayment period 60 months (max)
EMI for Rs.1.00 lakh Rs.2,301/-
Margin 25% on value of proforma invoice / Quotation
(Brand new vehicle)
Eligibility Professionals, businessman, salaried employees
and self employed
Purpose To purchase four wheeler for personal use

13. Type Of Facility Vehicle Loan (Four Wheeler For Commercial Purpose)
Maximum amount Rs.750.00 lakhs
However, eligibility subject repaying capacity.
Rate of interest 15.00% p.a. for Brand new vehicle (Loan amount up to Rs.5.00 lakhs)
&
16.00% p.a. for Brand new vehicle (Loan amount above Rs.5.00 lakhs)
Maximum repayment period 60 months (max)
EMI for Rs.1.00 lakh Rs.2,379/- with interest @ 15.00% p.a.
&
Rs.2,432/- with interest @ 16.00% p.a.
Margin 25% on value of proforma invoice / Quotation
(Brand new vehicle)
Eligibility Professionals, businessman, salaried employees and self employed
Purpose To purchase four wheeler for commercial use

14. Personal Loan
Type Of Facility Personal Loan
Maximum amount Rs.2.00 lakhs
Rate of interest 16.50% p.a.
Maximum repayment
period
60 months (max)
EMI for Rs.1.00 lakh Rs.2,458/-
Eligibility Professionals, businessman, salaried
employees and self employed
Purpose For personal purpose like marriage,
hospitalization, religious ceremony etc.

15. Loan/OD against
Shares/Debentures/PSU Bond
Type Of Facility Loan / OD Against Shares / Debenture / PSU
Bond
Maximum amount Rs.5.00 lakhs (Physical shares)
Rs.10.00 lakhs (Demated shares)
Rate of interest 13.50% p.a.
Maximum repayment period 24 months (max)
EMI for Rs.1.00 lakh Rs.4,778/- p.m.
Margin 50% on market value of demated shares
acceptable to the Bank
Eligibility Professionals, businessman, salaried
employees and self employed
Purpose For investment in shares & Debentures

16. Type Of Facility •Cash Credit Against Hypothecation Of Stock
AND / OR Book Debts
•Bill Discounting
Maximum amount Rs.750.00 lakhs
Rate of interest •14.00% p.a. up to Rs.5.00 lakhs
•15.00% p.a. above Rs.5.00 lakhs
Maximum repayment period Annual review
Margin A)
B)
•40% cost/market price, whichever is lower.
•50% of Book Debts not exceeding 90 days
Bills drawn on reputed Companies. Tenure of
Bills not to
exceed 90 days.
Eligibility Businessman
Purpose For development of business

17. Term Loan
Type Of Facility Term Loan (Asset Finance) / ODIP
Maximum amount Rs.800.00 lakhs
Rate of interest 16.50% p.a.
Maximum repayment
period
60 months (max) / yearly review
EMI for Rs.1.00 lakh Rs.2,458/- / N.A. (ODIP)
Margin 50% on market value of property
Eligibility Professionals, businessman and self
employed
Purpose For development of business

18. Type Of Facility Term Loan (Machinery)
Maximum amount Rs.800.00 lakhs
Rate of interest •14.00% p.a. up to Rs.5.00 lakhs
•15.00% p.a. above Rs.5.00 lakhs
Maximum repayment
period
60 months (max)
EMI for Rs.1.00 lakh 14% P.A.
15% P.A.
Margin 25% of value of proforma invoice /
Quotation.
Eligibility Professionals, businessman and self
employed
Purpose To purchase machinery

19. Graphical Representation of Loans
Advanced by Kapol Bank
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012
Long-term Loans (in crores)
Long-term Loans (in crores)

20. Analysis
• Most of the loans have a long repayment period usually exceeding 1 year.
• Loan/OD against Shares/Debentures/PSU Bond and Term Loan offered by
Kapol Bank are subject to yearly review, therefore, these loans can be short
term loans as well.
• Kapol Bank offers variety of loans ranging from housing loans to Loan/OD
against Shares/Debentures/PSU Bond.
• The margin money on loans offered by the bank is very high ranging from 25%-
50%.
• The bank only gives secured loans.

21. Thank You
Questions?