BCC:BR:98:320

November 22, 2006.

CIRCULAR TO ALL CBS BRANCHES & OFFICES IN INDIA

Sub. File ADV.-2. ISSUED BY RETAIL BANKING DEPARTMENT

Dear Sir, Re: Retail Banking: Repositioning of Baroda Loan for Personal computer as Baroda Loan for Laptop & Personal Computer. Acknowledging the importance of information technology in daily life, the bank has launched a product in April, 1998 which provides finance for purchase of personal computers. The product has last been modified in July, 2003. Education pattern has gone under metamorphosis as now children even reading in primary schools are exposed to computers as a part of their educational curriculum. In view of use of computers in every sphere of life, computer literacy has become integral part of educational courses irrespective of specialized field chosen by a student for his future career plan. Due to continuous technological advancements, prices of desk-top and laptop computers have fallen significantly. Now a laptop of reputed brand is also available in less than Rs. 40000/-. In view of low prices, sleek size and easy in carrying anywhere, laptops are becoming more popular in students and young executives. There is a good scope for financing of laptops under the product. However, it has been observed that branches are not marketing the product for purchase of laptops under the misnomer that it may not be included in our product i.e. Loan for Personal Computer. Hence, it has been decided to rename our existing product as Baroda Loan for Laptops & Personal Computer. To promote the product the Bank is proposing for aggressive publicity through print media. The theme of the publicity may be Gift your loved ones, a Laptop on the next birthday or other theme of similar nature. In most of such cases, loans will be availed by parents, branches should endeavour to open savings bank account of the minor / major ward of the loanees. This will provide an opportunity to the branch to establish banking relationship with younger generation from very early stage. Our publicity campaign should result in a large number of enquiries / leads for the product. Hence, branches are advised to respond quickly to all such requests and try to convert them in sale. Besides students, the branches must target young executives, who have good scope not only for this product but also potential for other retail liability / asset products. We are sure that branches will put in concerted efforts in selling the product and able to bring a large number of youngsters under its fold.
Yours faithfully,

(Ajai Kumar) General Manager (Retail Banking & Marketing) Encl: Product Profile.

ANNEXURE BARODA LOAN FOR LAPTOP & PERSONAL COMPUTER PRODUCT PROFILE PURPOSE Laptops / Personal computers, Licensed Software, printers. NOTE: Loan can be availed of for more than one item within the loan limit. All resident Indian Citizens. The loan may be considered either in individual name or jointly in the names of more than one individual. Salaried employees, professionals (like doctors, engineers, chartered accountants, lawyers), businessmen, other self-employed persons including farmers. In case of salaried employees, he/she should be permanently employed for atleast-1-year with the present employer. (This stipulation may be relaxed on merits of the case by the Sanctioning Authority). Should be residing normally at the same address at least for the last - 2 years. (This stipulation may be relaxed on merits of the case by the Sanctioning Authority). The applicant's prior account relationship is not essential. However, details of the applicant's present account (either with our Bank or with other Bank) for last six months, should be studied to satisfy that the conduct of the account is satisfactory. The applicant should not have any other outstanding loan for the same purpose from our Bank or other institutions/ sources. (During personal discussion with the applicant, this could be confirmed and recorded. Declaration to that effect may be obtained in the application form also). For Hardware - Rs. 1,00,000/For Software - Rs. 20,000/- (only for licensed software) subject to deduction should not exceed 60% of total income including proposed loan EMI. In case of request for loan for both, separate loan a/c should be maintained, as repayment period of loan is different. Hardware & Software 25% Note: Margin is to be reckoned on the invoice price (inclusive of tax) of the items to be purchased. OF Presently 13.5% p.a. with monthly rests (Fixed) Note : Rate during the currency of the loan and it will remain fixed / unchanged till repayment of the loan. Overdue interest at 2% on overdue amount as per existing guidelines. Hardware - not exceeding - 60 EMIs for Laptops & PCs. Software - Not exceeding - 24 EMIs. First installment will commence one month after first disbursement.

ELIGIBILITY

MAXIMUM AMOUNT

MARGIN

RATE INTEREST

REPAYMENT PERIOD

SECURITIES

Loan agreement cum-Instrument of Hypothecation If loan exceeds Rs. 50,000/-, third party guarantee of persons having adequate means AND / OR pledge of securities like NSCs, shares etc., of satisfactory values AND / OR mortgage of immovable properties of satisfactory values. Usual undertakings / documents as applicable to pledge of FDRs, NSCs, shares Bonds, Units etc., if stipulated. DISBURSEMENT Disbursement of loan amount (including margin money) to be made directly to the supplier after obtaining an authority from the borrower. PROCESSING / Upfront 1% of the loan amount, minimum Rs. 100/-. DOC. CHARGES Documentation Charges as per Bank's Service Charges Circular. OTHER For salaried persons - salary slip or employer's certificate CONDITIONS will be proof of income. For others - Income-tax return filed (For ascertaining the income & repaying capacity) An undertaking from the borrower that he/she will use only legal software in the systems financed by the bank and that he/she will ensure use of proper anti-virus software on the computer systems. Loan is to be considered only for reputed brand. General Conditions: Branches should retain on their record the Delivery Challan signed by the borrower confirming the receipt of the articles in good condition. Where the loan is required for purchases of Laptops or personal computer for professional needs by Doctors, Lawyers, Accountants, Other Professionals, facility may preferably be considered under scheme for financing Professional and self-employed persons. Where such loans are considered for group of employees of any business organization, by having a tie up with the concerned organization, letter of authorizing deduction of EMI from the salary as also from terminal benefits in case of cessation of employment may be obtained from the employees and the letter may be got acknowledged by the organization.

Retail Banking Department, BCC, Mumbai.