Indian Overseas Bank

Central Office,
Indian Overseas Bank,
763,Anna Salai
Chennai 600 002

ADVANCES-PERMANENT
Ref. No. ADV/ 461 / 2013-14
Date: 06.03.2014
Issuing Dept: SME

Circular to all branches/ROs /NBGMOs

PREAMBLE:

Revised General Credit card (GCC) Scheme

Reserve Bank of India vide their circular RPCD.MSME &NFS. BC No. 61/06.02.31
2013-14 dated 2nd December 2013 advised the revised general credit card
Scheme, with the objective of improving the flow of credit to individuals for
entrepreneurial activity in the non-farm sector. In our Bank we are having the
above scheme under IOB General Credit Card (IOB- GCC) scheme under
circular No.ADV/26/2006-07 dated 9.9.2006 issued by Priority Credit (AGRI)
department. The required modifications have been made under the scheme as
per the guidelines issued by RBI vide the above circular, to ensure greater flow
of entrepreneurial credit to individuals particularly to borrowers of small means.
ELIGIBILITY CRITERIA
All individuals who are in need of non-farm entrepreneurial credit, which is
eligible for classification under priority sector credit, like - artisans, weavers,
fishermen, rickshaw owners, self employed persons etc.
Issue of cards:
The beneficiaries under the Scheme will be issued with a laminated credit card
and a pass book. This will serve as an identity card as well as facilitates recording
of transactions on an ongoing basis. The passbook would contain the
repayment schedule of the term loan also. A passport size photograph of the
holder will be affixed on the card in the space provided for. The cardholder
would be required to produce the card and the passbook whenever he
withdraws cash from the account.
Fixation of Limit:
The initial investment in fixed assets and /or working capital requirement
/recurring expenditure of the borrower is to be taken as the base for fixing limit.
The working capital /recurring expenditure limit may be in the form of a
revolving cash credit and fixed as a percentage of the turnover divided by the
number of operating cycles in a year. The total limit would have a relationship

with the projected net earnings and the repaying capacity of the borrower. At
present, the maximum loan amount under GCC is revised to Rs. 100000/-.
Disbursement of CC limit: The amount may be drawn in cash at the card issuing
Branch by loose cheque leaf issued for the purpose. No cheque book will be
issued.
Sanction of Term Loan:
The Term Loan will be provided for meeting the investment requirements and it
will be repaid within 5 years in suitable instalments, based on net earnings.
Margin
Margin up to Rs. 50,000/

-- Nil

Above Rs.50, 000/-

-- 10 to 15 %.

Rate of Interest:
Interest applicable is Base Rate + 0.75% for advances under GCC (11.00% as on
date).
Security:
Assets created out of loan to be hypothecated to bank as prime security. No
collateral security/third party guarantee is required as the advance is below
Rs.10.00 Lacs and purpose is non-farm entrepreneurial credit needs.
Coverage under CGTMSE:
Wherever the activity is eligible for CGTMSE cover, the same should be covered
under CGTMSE guarantee scheme.
Validity / Renewal of Limit:

The GCC is normally valid for Three Years subject to an annual review.

The review may result in continuation of the facility, enhancement of the

limit or cancellation of the facility, depending upon the performance of
the borrower.

Under the scheme, term loan component could be enhanced within the
overall limit in case of need to satisfactory repayment performance of the
borrower. The revolving Cash Credit may be renewed within the overall
limit sanctioned. Norms generally applicable to CC limits are applicable
to GCC accounts also. Where necessary, the working capital component
could be enhanced, within overall ceiling, to provide for escalation in the
cost of inputs, etc. subject to satisfactory repayment performance.

No drawal will be permitted if revolving cash credit remains outstanding

for more than 12 months.

The aggregate credits in the account during the 12 months period should
normally be equal to the maximum outstanding in the working capital
component plus the instalment of the term loan availed of, if any.

No fees will be charged at the time of review/renewal of card.

The issuing Branch would maintain the ledger accounts in respect of each
GCC account holder. The Term loan component and working capital
component will be accounted separately.

The master shall be created under GL code 4156 IOB general Credit
Card Scheme.

CONCLUSION
As the revised General Credit Card scheme provides hassle free credit to the
eligible target groups as advised by Reserve Bank of India, we advise all
branches/ROs/NBGMOs to market the same in a big way.

(NAVAL GUPTA)
General Manager

Annexure - I
APPLICATION FOR IOB GENERAL CREDIT CARD
1. Name in Full:
2. Fathers / Husbands Name:
3. Date of Birth / Age:
4. Sex:
5. Marital Status:
6. Ration Card No:
7. Voter ID No:
8. SB Account No:
9. Status : BC / SC / ST / Minority
10. Occupation:
11. Annual Income:
12. If employed Office / Business address:

13. Residential Address:

14. Declaration:
The particulars furnished above are true to the best of my knowledge and belief and I
agree to inform the Bank, changes if any, as & when they occur. I have neither applied
for nor obtained any other credit card so far.
I hereby apply for IOB General Credit Card limit of Rs.____________. I have read /
understood the IOB GCC scheme. I understand that the limit is subject to periodical
review and the limit may be revised / cancelled depending on the track record. The
decision of the Bank in this regard shall be final and binding.
Signature of the applicant
Date:

Annexure - II
INDIAN OVERSEAS BANK
________________Branch
Date: ...
APPRAISAL NOTE FOR SANCTION / RENEWAL OF LIMIT UNDER
GENERAL CREDIT CARD (GCC) SCHEME
NAME OF THE ACCOUNT
LIMIT

Rs.

Category
Priority Classification
Asset Classification

1. Information on the applicant/activity:

a.
b.
c.
d.
e.
f.

Name of the applicant

Line of Activity
Date of Establishment
Banking with us since
Credit facilities with us since
Deposit Connection

2. Details of existing credit limits:

Sl.
No.

Type of Facility

Limit

DP as on
_________

O/s as on
__________

3. Calculation of limit:
For Term Loan component:
i) Proposed investment in machinery/equipment/tools,etc:
ii) Other investments for acquiring fixed assets related to the activity:
iii) Total investment proposed:
iv) Less: applicable margin:
v) Loan amount under Term loan:
For working capital component:
i) Cost of average stock / materials required:
ii) Anticipated annual turnover:
iii) No. of operating cycles per year:
iv) Cash credit limit:
Total limit under General Credit Card:
(Total of Term Loan + Cash Credit should not exceed Rs. 1, 00,000/-)

Asset
Classification

Projected net earnings:

Repayment programme for term loan:
No. of instalments:
Instalment amount:
Instalment start date:

4. Information on the conduct of the Cash Credit account (for Review):

Year

Nature
of
facility

outstanding
Min

Max
(A)

Term loan
instalment (if
any)
(B)

Total
Credits
during the
year(C)

If (C) is more
than (A+B) or
not

5. Details of Insurance (wherever applicable):

Sl. No
Particulars
1.
Insured with
2.
Amount of Insurance
3.
Valid Up to

On Prime Security

6. Position of rectification of latest CO inspection irregularities, if any:

Irregularities pointed out

Rectification position

7. Recommendations:

Assistant Manager
Sanction:

A limit of Rs._______________ under "IOB General Credit Card" Scheme is

sanctioned, subject to periodical review.

Branch Manager
Date:

ANNEXURE III
FORMAT OF GENERAL CREDIT CARD

GENERAL CREDIT CARD

----------------------------- BRANCH
Serial No:

Date:

Photo

Name of the Card Holder:

Fathers /Husbands Name:
Address: ------------------------------------------------------------Village/Town:
Valid up to:

Signature of Card Holder:

Signature of issuing Authority

Branch Name