Checklist of Papers/ Information/ Documents required for processing Loan applications

Other

CHECK LIST OF PAPERS/ INFORMATION/ DOCUMENTS REQUIRED FOR PROCESSING LOAN APPLICATIONS

PROJECT LOANS (Other than Commercial Real Estate):

Project Information Memorandum
Profile of promoters & Shareholding pattern
Status of financial tie-up, giving bank-wise details as to whether in-principle or final sanction, date & amount
Status of statutory approvals
Projected Commercial Operation Date
Implementation schedule and draw down schedule
In case of existing companies, the status of their account with present bankers
Chartered Accountants Certificate on Source & Application of funds as on date
Techno Economic Viability Study by approved agency
Details of suppliers & their profile
Details of securities, nature & value, kind of charge (Equitable / Registered mortgage /

Hypothecation / Assignment / Exclusive or pari-passu etc.

LIE/ Chartered Engineer Certificate in case of existing projects

Commercial Real Estate Projects:

Approval of Sanction Plan
Details of FSI / FAR available, permissible, applied etc
Confirmation that the project land is independently accessible.
Status of acquisition of project land, legal opinion, index inspection and confirmation from bank’s legal counsel that the project land is free from encumbrance and enforceability under SARFEASI Act.
Certificate on land usage i.e. the land is non-agriculture & non-industrial and can be used for commercial activity and confirmation that the project area is not located in sensitive area (farmers agitation / local disputes etc)
Techno Economic Viability Report on the project
Status of Statutory Approvals / Permission
Confirmation that the project construction is as per National Building Codes

NON-BANKING FINANCIAL COMPANIES

Copy of Certificate of Registration with Reserve Bank of India as Investment Company / Infrastructure Finance Company / Asset Finance Company / Micro Finance Institution etc along with confirmation that the registration is current & valid.
Gross & Net NPA Levels, Capital Adequacy Ratio
Net Owned Funds & CMA data
Certificate on compliance of all the Reserve Bank of India, National Housing Bank (in case of Housing Finance Companies) guidelines as stipulated for Non-Banking Financial Companies from time to time
Copies of Statutory Returns submitted to Reserve Bank of India / National Housing Bank

MANUFACTURING UNITS:

Project Information Memorandum
Status of approval from Statutory Authorities
Confirmation that the project is non-toxic and compliant of pollution control regulations
Status of financial tie-up in case of large project, giving break up of bank-wise sanction
In case of existing units, status of payment of statutory dues such as local taxes, Provident Fund, Employees State Insurance etc.
Licensed Capacity, Installed Capacity, Envisaged Capacity utilization
Details of suppliers of machineries & their profile

General check list

(As per guidelines)

S.No.	Particulars	Whether applicable or not (Y/N)	If applicable, whether enclosed or not (Y/N)
1	Loan Application in the prescribed Form
2	Audited Balance Sheet, Profit & Loss Account for last 3 years in case of existing units
3	Tax Audit Report for last 3 years
4	Copies of Income Tax / wealth Tax / Sales Tax / Excise Duty Assessment Order (or Returns or payment Receipt) for last 3 years
5	Projected Balance Sheet for the Next 2 years in case of newly established entities Next year in case of renewal / reviewal of existing entities.
6	Credit Monitoring Arrangement (CMA) Data on the prescribed proforma - Working Capital has been assessed by Permissible Bank Finance method and DSR (in case of Term Loan)
7	In case the property is to be taken as security / collateral security Legal Opinion / Index Inspection from legal counsel Valuation Certificate from approved valuer Valuation Report of Branch Manager & Accountant Visit Report
8	In case of Ltd. companya) Memorandum & Article of Association Certificate of Incorporation Certificate of commencement of business (for Public Limited Company only) Certified Copy of latest list of Directors Resolution authorizing the company for bank borrowing Certificate of Registration of Charge from Registrar of Companies in case of existing facilities availed A Certificate from statutory auditors of the company that the company has not defaulted in payment of interest / principal to small depositors (deposit less than 20000/-) and that the company has complied with the provision of section 58AA of the companies Act 1956. Names and shareholdings of major shareholders.
9	In case of Trust - Trust Deed Resolution for the borrowing
10	In case of Cooperative societies By-laws Permission from Registrar of Societies for proposed borrowings Resolution for the borrowing, creation of charge on assets of the society
11	In case the borrower has allied concerns Balance Sheet, P&L A/c, Manufacturing / Trading account Income Tax / Wealth Tax assessment orders Details of borrowings of borrower and group from Banking system
12	Partners / Guarantors / directors etc. Credit Report from present bankers IT / Wealth Tax Assessment Orders for the last 3 years (only for the previous year in case of renewal/reviewal) Asset and Liability statement/ Net Wort Certificate
13	Confidential Report from the existing bankers of the borrower
14	NOC received from the existing bankers of the borrower
15	NOC from financial Institution / Banks for ceding pari-passu charge in favour of the bank
16	Credit / Opinion Report (Market Report) on the borrower
17	Copies of permission from competent authorities like Pollution Control Board / Municipal Corporation etc.
18	In case of renewal, copy of latest renewal / sanction
19	In case of existing borrowal accounts Whether the party / sister concern is a defaulter in repayment of dues to the Bank & Rebate has been allowed earlier in any case (If yes, attach details with the proposal) Whether Insurance Policies are alive and securities are properly insured & mortgage charged to Bank Changes in management since last sanction.	Yes/ No Yes/ No Yes/ No
20	In case of term loans for construction / alteration etc Approved plan Architects estimate for the construction / alteration of the building NOC from the competent authority for mortgage / equitable mortgage of land / building in case of lease hold property.
21	In case of Letter of Credit facility Copy of valid permit / import license for goods imported IEC No., in case of imports. Related contract between buyer & seller in case of import of capital goods.
22	In case of Bill Discounting – List of Drawee(s) Banker’s opinion / Report from External agency on drawee
23	In case of manufacturing units Project Report along with implementation schedule Industrial Licenses SSI Registration Certificate Power sanction letter from the Electricity Department.
24	Valuation Certificate in case of old machinery to be taken as primary /collateral security
25	In case of manufacturing units, report of Technical officer
26	Pre lending Visit report of BM / Official of ZO / ZM
27	In case of Bank Guarantee Proforma of Bank Guarantee, if the beneficiary insist for bank guarantee on a proforma other than Banks own model Bank Guarantee form Copies of primary contracts BM’s site visit Report in case of performance Bank Guarantee Deferred Payment schedule in the case of Deferred payment Guarantee
28	In case of partnership concerns/ Limited Liability Partnership – Partnership deed Registration Certificate issued by Registrar of firms
29	CIBIL Report of all promoters / directors / guarantors Confirmation that the promoters / directors / guarantors are not in the defaulters’ list of ECGC / RBI / CIBIL
30	Compliance of KYC norms
31	Lending under Consortium / Multiple Banking Minutes of last lenders’ meeting Confirmation that the Common Loan Agreement / Security Documents have been vetted by Lenders Independent Legal Counsel Lenders Independent Engineers Report on status of the project giving specific comments on physical progress (status of implementation) vis-à-vis projected schedule In case of delay in implementation of project the reason for the delay and measures initiated Details of Security Trustee (name & address), Certificate of Creation of Security & copy of registration with ROC Joint Inspection Report / Unit Visit Report of lenders Status of pending approvals if any
32	External Rating (if available)
33	Succession plan of management
34	Undertaking with regard to non-withdrawal of unsecured loans from business
35	Sales/ Profit figures up to last quarter