BANKING OPERATIONS AND

CREDIT ANALYSIS

GR1

Group assignment on functioning of

INDIAN OVERSEAS BANK

Submitted by: Group 17

Aditya Vasudeva PGSF2002

Aziz Ur Rehman PGSF2010

Mukul Chauhan PGSF2014

Simran Gupta PGSF2026

Vikash Kumar Ojha PGSF2029

INTRODUCTION

1. Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri. M.Ct.M.
Chidambaram Chettyar, a pioneer in many fields.
2. The Bank was founded by him with the main objective of specializing in foreign
exchange business in banking to take the Bank across the globe
3. IOB started business simultaneously - at Karaikudi, Chennai and Rangoon in Burma
(presently Myanmar) followed by a branch in Penang, Malaysia.
4. At the dawn of Independence IOB had 38 branches in India and 7 branches abroad
-and Deposits stood at Rs.6.64 Crores and Advances at Rs.3.23 Crores at that time.
5. IOB was one of the 14 major banks that were nationalized in 1969. On the eve of
Nationalization in 1969, IOB had 195 branches in India with aggregate deposits of
Rs.67.70 Cr. and Advances of Rs.44.90 Cr.
6. Bank Presently has its Overseas Presence in 4 Countries Singapore, Hongkong,
Thailand and Sri Lanka.

Followings are the Major Milestones

Milestones Details

1937 Opening of Bank Branch Simultaneously in India & Abroad

1938 Opening Branch in Kuala Lumpur

1941 Opening Branch in Singapore

1945 Opening Branch in Colombo

1955 Opening Branch in Hong Kong

1957 Bank Established its own Training Centre

1960s Was a decade of inorganic expansion for the Bank. The Bank took over:
The Coimbatore Standard Bank Limited, The Nanjinnad Bank Limited,
The Coimbatore Vasunthara Bank Limited, The Kulitalai Bank Limited,
 Milestones Details

The Srinivasaperumal Bank and The Venkateswara Bank.

1964 Inauguration of IOBs Head Office in Mount Road - A monument of

highest Banking Tradition.

1969 Nationalisation of the Bank

1973 Formation of United Asian Bank Berhad (Indian Bank / IOB / United
Commercial Bank)

1974 Official Language Department Established in 1974

1977 Bank opened its Tsim Tsa Tsui Branch at Kowloon side of Hong Kong

1990 Took over Bank of Thailand

1991 Bank Moved its Staff College Premises to a own Spacious Learning zone
at Koyembedu

2000 Initial Public Offer, Follow on Public Offer in 2003

2005 Launched Debit Card

2006 Launched Visa Card, Retail Sale of Gold and Non Life Joint Insurance

  Bank Reached INR 1 Lac Crore mark in Total Business

2006-07 Bharat Overseas Bank Ltd. was Merged with IOB

2007 First Off site ATM at Kamatchi Hospital, IOB

2009 100% CBS

2011-12 No of Branches in Tamil Nadu reached 1000, IOB celebrated Platinum

Jubilee
 Milestones Details

2012-13 Received National Award for Excellence in MSME Lending and for
outstanding performance for implementing PMEGP programme in
South Zone

2012-13 Received Bankers Excellence Award from Rotary International USA

2013-14 3000th Branch Vaniangudi opened on 17.08.2013 by Honourable

Finance Minister

  IOB Adjudged Best Public Sector Bank in Priority Sector Lending by Dun
& Bradstreet

  The New Indian Express & Sunday Standards Best Bankers Award
Presented to IOB

  Agriculture Leadership Award 2013 Conferred to our Bank

  Award for Best RSETI in the Country Received by our RSETI Tanjore

2015-16 IOB has Migrated from In-house CBS Software "Crown" to Finacle

  IOB adjudged 1) Skoch Order of Merit for Financial Inclusion and

Automated Data Flow/MIS Project

  2) IBA Award for the Best use of Data

2016-17 Express Intelligent PSU Award Received for Implementation of CBS

Migration to Finacle 10.x Project. Our Core Banking Migration was
Adjudged Amongst Top 100 Projects in India and Conferred SKOCH
Order of Merit Award During 46th SKOCH Summit.

  In May 2018 Bank received special award from NPCI in recognition of

excellent performance in Rupay, NFS ATM network, CTS and NACH.
 

  In Feb 2019, Bank was declared WINNER by IBA for Best Use of  Data
  Analytics in the group of Medium Size Banks.
 Milestones Details

In March 2019, DFS honored Bank with EASE BANKING REFORM

AWARDs 2019 - Winner award for DEEPENING FINANCIAL INCLUSION &
DIGITALISATION

In MeitY's fortnightly Scorecard for bank during FY 2018-19, for the

fortnight ending 15th September 2018, our Bank secured a score of 70
and was ranked first among Public Sector Banks and ranked  ninth
 
amongst 56 scheduled commercial Banks.
 

  Under Digidhan Mission: Bank has also beeen awarwed with Digital
payments awards 2018-19 for outstanding performance in POS
2018-19 deployment in Northeast.

Deposit Schemes at India Overseas Bank

Major types of savings accounts that the bank offer its customers and there details are as
follows:

 “Regular SB Account
o Eligibility - Individuals, Joint accounts, Clubs, associations, trusts, etc. (Minors who
have completed ten years of age can apply in their names)
o Minimum balance – Rs 100 in rural and semi-urban areas & Rs.500 in other
branches.
o Interest rate – 2.90% p.a.
o Interest payment - Interest is paid on daily product basis.
o Benefits - International VISA/MASTER/RUPAY Debit Card; Instant Credit of
Outstation Cheque upto Rs.15,000/-; Internet banking & Mobile Banking facility;
Nomination facility; Standing Instruction Facility; Insurance Products”

 “IOB Eighty Plus SB

 o Eligibility - All Super Senior Citizens with age 80 and above as on date of opening of
account
o Minimum balance – No Minimum balance
o Interest rate – 2.90% p.a.
o Benefits – Door-step Banking to the needy customers; Hassle free submission of
Life Certificate for Pensioners using Jeevan Praman / Biometric Platform; Free
Medical checkup during annual camp; Collection of TDS-Exemption Certificate
(15H); Delivery of TDS certificates through email / courier”

 “IOB - SB Gold I
o Eligibility - All individuals including professionals such as doctors, lawyers, C.A.S.,
Executives working in MNC, software companies, Public/private sector and business
people, High Net Worth individuals, CEOs, IAS and IPS
o Minimum balance – Quarterly average balance not be less than Rs.50000/-
o Interest rate – 2.90% p.a.
o Benefits - International Debit Card Issued without charges; Monthly account
statements over E-mail; RTGS and NEFT without charges; Personal Accident
Insurance covers of Rs. Five lakhs; Online bill payment facility; Facility for Family
Health Insurance”

 “IOB - SB Gold II
o Eligibility – Same as above
o Minimum balance – Quarterly Average Balance not less than Rs.100000
o Interest rate – 2.90% p.a.
o Benefits – All of the features listed above plus Demat account opening charges free;
Online Tax payment free of cost; Online bill payment facility; Online equity trading
facility; Overseas Travel card free of charge”

 “IOB - SB Silver I
o Eligibility - All Individuals Including those Employed in Reputed Companies, Among
Software, Public /Private Sector, Govt.
o Minimum balance – Quarterly Average Balance should not be less than Rs. 5000/-
o Interest rate – 2.90% p.a.
o Benefits - Personal Accident insurance covers of Rs. One lakh free of cost; Utility Bill
payment facility – Rent/school fees/college fees/ donations/ IOB credit card
bills/utility bills/ Telephone bills; Overdraft facility up to one-month salary in case of
salary earners; Personal Accident insurance covers of Rs. One lakh free of cost”

 “IOB - SB Silver II
o Eligibility - Same as above
o Minimum balance – Same as above
o Interest rate – 2.90% p.a.
o Benefits – Sweep Facility (Facility for automatic transfer of balance in SB to Term
Deposit – If the quarterly average balance is Rs.25000/- and above, this facility is
offered, where in the balance exceeding Rs.35000/- will be swept out in units of
Rs.2000/-and kept in TD. When the balance goes down below the minimum
requirement, adequate number of units will be closed and transferred to SB on a last
in – first out basis.)”

 “IOB Student
o Eligibility – Students of age 10 Years and above
o Minimum balance – Rs. 500/- (Zero balance with prior permission)
o Maximum balance – Rs 50,000/-
o Interest rate – 2.90% p.a.
o Benefits - Fund Transfer Facility / Bankers Cheque (or) Demand Draft restricted to
tuition Fees / Hostel fees to a Particular School / College Account for payment of
fees; Issue of Debit card without charges; Free Standing Instructions; Free Cheque
Book”

 “IOB Corp Salary Account

o Eligibility – Can be opened and maintained at Zero Balance as long as he/she
associated with that organization and receiving salary in the same account.
 o Minimum balance – Average quarterly Balance Up to Rs. 50,000/-
o Interest rate – 2.90% p.a.
o Benefits – Free Stop Payment of cheques; Free Personal Accident Insurance
(Death/Permanent Disability) Coverage of Rs. 1.00 Lakhs for self and an additional
Coverage of Rs. 50,000/- for spouse; Overdraft Facility: Up to One month net salary
at the rate of interest applicable to temporary overdraft facility; 25% concession in
processing charges for Retail Loans: Housing Loan, Vehicle Loan and Educational
Loan. (For the 1st Loan); 50% concession on Demat Account charges - for first year
only.”

 “IOB SB Arogiyamahila
o Eligibility – Women of age 18 years and above with independent source of regular
income. Self-employed women professionals. Salaried Women employees
o Minimum balance – Quarterly average balance not less than Rs. 5,000/-
o Interest rate – 2.90% p.a.
o Benefits – Facility of Auto sweep in and sweep out, Health Insurance with maternity
benefits & health checkups with discounted rate of premium; Online Tax payment
free of cost; Facility for Family Health Insurance; Balance exceeding Rs. 25,000/- and
above will be swept out in units of Rs. 5,000/- and kept in Term Deposit. As and
when the balances goes down below the minimum requirement, adequate number
of units will be closed and transferred to SB on last in first out basis.”

There are 3 types of current accounts offered by the bank, which are:

 “IOB-CD Classic
o Eligibility – Proprietary concern, Partnership firm, HUF, Limited companies,
corporations, SMEs, Trusts, Societies, clubs, Association, Local Bodies, Govt.
Departments subject to RBI directives
o Minimum balance – The average daily balance in the current account during last three
months should not be less than Rs. 100000/-
o Benefits – Free Internet banking & Mobile Banking Facility; Transfer of Funds through'
NEFT Free; Personal Accident insurance Cover of Rs. 100000/- Free of Cost; Waiver of
 Demat account opening charges; Named printed cheque books free of cost up to 100
leaves; Folio Charges @ 50% concession; International Debit Card without charges to all
employees and owners; Online Tax Payment Facility; Issue of Demand Drafts @ 50%
Concession; Outstation Cheque Collection Charges @ 25% Concession; Utility Bills
Payment Facility”

 “IOB-CD Super
o Eligibility – Same as above
o Minimum balance – The average daily balance in the account over the last three
months should not be less than Rs.5 lac.
o Benefits – Same as above”
 “IOB CD- Supreme
o Eligibility – Same as above
o Minimum balance – Rs. 7500/-
o Benefits – Free 75 Cheque Leaves; Rent Free POS for 75 Days; Cash Withdrawal up to
RS. 50,000/- under CBS transactions from any branch; RTGS / NEFT (Above Rs. 1.00
Lakh) Facility Available with 75% Concession.”

Apart from these accounts, “Indian Overseas bank” also allows its customers to put their
money into floating rate deposits. These deposits are accepted for period of 3 years and up
to a maximum of 10 years. The minimum deposit amount accepted under the scheme is
Rs.1 lac and in multiples of Rs.10,000/- thereafter. The interest on the deposit is payable
quarterly on the 1st working day of January, April, June, and September. On premature
closure there will be a foreclosure charge of 1.00%. Loan up to 90% of the amount of
deposit can be obtained. The interest payable on the loan will be 2.00% over the Floating
rate. Similarly, they have a product named unfixed deposit, in which an individual can invest
a minimum amount of Rs 50 lacs for 7 – 179 days. The interest rates for these deposits
range between 3.40-5.25 for amounts below Rs 2 Cr, whereas between 3.40-5.20 for
amounts above Rs 2 Cr. There are special provisions like “For Senior Citizens Additional Rate
of 0.50% and for Super Senior Citizens (aged 80 years and above) Additional Rate of 0.75%.”

RETAIL LOANS
1- Educational Loans/ Vidya Jyoti – To avail this loan facility individual must be an
Indian national and have secured admission to higher education course in recognized
institutions in India through Entrance Test / Merit Based Selection process after
completion of HSC (10 plus 2 or equivalent). Repayment of loan will be in equated
monthly installments for a period of 15 years, with the rate of interest of 8.55% -9.08%.
Quantum of Loan is min amount Rs.7.5 lacs and max is Rs.30 lacs. And for foreign
studies amount should be Rs. 40lacs.
OTHER CONDITIONS
 If the student is not able to complete the course within the scheduled time,
extension of time for completion of course may be permitted for a maximum period of
2 years.
 1% interest concession may be provided by the bank, if interest is serviced during
the study period and subsequent moratorium period prior to commencement of
repayment.
 The loan to be disbursed in stages as per the requirement / demand directly to the
Institutions / Vendors of equipment’s / instruments to the extent possible.

2- Vehicle Loans- Pushpaka- When an individual want to buy a bike or car, can apply
to avail the loan facility till 5 years, with the interest rate of 10.05% for 2-wheeler and
7.55% for 4-wheeler. Where bank finance the loan amount upto 90% of the cost of the
new vehicle, In case of used vehicle it is upto 75% of the market value of the car or
vehicle. To avail the loan facility applicant must be a permanent employment in a Govt
office/PSU/ Private enterprise/ or self-employed professional.
Security and documents
 Hypothecation of the vehicle purchased
 The Banks lien on the vehicle should be marked in the R.C. book
 Vehicle should be insured for the full value with the bank clause
 An application form
 Salary certificate, IT return or assessment order as a proof of income
 Quotation/proforma invoice - for a new car/ new two-wheeler
 Valuation certificate from two reputed auto dealers - for used car

3- Home Loan

1- Housing loans subha Gruha - when an individual or group want to buy or

build house or to renovate his house, he can apply to home loan, Quantum of loan is
upto 75% to 90% of the cost of the house/flat excluding Registration and
Documentation charges. The amount depends on his age and repayment capacity. Up
 to 30% of the loan amount given for purchase of plot. Margin  ranges from 10% to
25% of the estimated cost (including the cost of the land) for new as well as old
houses/flats, depending upon the loan quantum. Repayable in equated monthly
installments for a maximum period of 30 years.

SECURITY
First mortgage on the property to be bought, constructed or renovated
The land should be in the applicant's name or jointly with spouse who should be a co-
obligant
Should have a clear and marketable title over the property
should have comprehensive insurance on the property for adequate value
Additional security in the form of NSC, LIC, Units of UTI will also be accepted.
DOCUMENTS REQUIRED
 An application form Salary certificate as a proof of income .
 Agreement for sale of house/flat.
 Proof of membership (for co-operative societies etc.)
 Proof for experience in the line of activity (for professionals, business people
etc.)
 Estimates for Construction/Valuation Report for Acquisition/Legal opinion on
the
 Property from Bank approved Engineer/Lawyer.

2- Mortgages - Home Décor- To furnish home with furniture, kitchen equipment, air
conditioner, room coolers, curtains, cots, sink, bath-tubs, show-case, cup-boards,
carpets, etc. Repairs / renovation of the apartment and also cost of development of
common area of the apartment are also covered. The loan amount varies in
proportion to the monthly income.  Ten times the gross monthly income or Rs. 10.00
lakh whichever is less if collateral equal to the loan amount is offered. The minimum
margin is 25% of the cost. Margin money is to be kept as a term deposit till the loan
is closed.
Repayment the Loan
In EMI for a maximum period of 6 years. The EMI for this loan and housing loan
should not be more than 60% of gross pay. No Prepayment charges
Security
 Hypothecation of the items bought If house was bought through finance from
another bank or financial Institution, a no lien letter from the bank /financial
institution should be submitted.
 Third party guarantee for the loan
 Above Rs. 2.00 lakh to Rs. 5.00 lakh
 Mortgage of the flat/house which is being furnished.
 Documents
 Proof of income (from you and his guarantor)
 Copy of title deeds of his house / flat
 If you have an existing housing loan, you will have to produce a certificate for
the outstanding balance
 Estimate/quotation for items you intend to buy
3- Mortgages - Easy Trade Finance – Bank provide this loan to meet the working capital
needs and also term loan needs viz. buying a shop, showcase, equipment and in
general for setting up/running a shop or office or any other contingent requirements
relating to the business of retail trade. The minimum finance under the scheme is Rs.
100,000/- and the maximum is Rs. 100 lacs. The total of working capital and term loan
put together should not exceed Rs. 100 lacs. In rural branches, the maximum limit that
can be considered is Rs. 10 lac only. The advance is fully secured by collateral security
and margin on the collateral security, depending on the nature of security, is to be
maintained. Term loan is to be repaid in max. 48 EMI. Cash Credit will be renewed /
reviewed every year.
Margin
 Liquid Securities: Life Policies - 10%; KVP/IVP/NSC - 20%; Term deposit - 10%.
 Immovable property: The margin is 30% if the property is located at urban and
Metro centres, 40% for semi urban centers and 50% if the property is located at rural
centres.

Security
The advance is secured by Immovable property and / or liquid assets such as Life
policies of LIC of India and Private insurance companies approved by IRDA,
NSC/IVP/KVP etc.

4- NRI Home Loan – An individual want to buy, build or renovate his home. For
building or buying a new house - Maximum of 80% of the cost of the house. For
renovating house - Maximum of Rs. 15 lakh. 90% for Loans up to Rs. 20 lakhs, 80% for
loans up to Rs. 75 lakhs and 75% for loans above Rs. 75 lakhs. Margin varies from 10%
to 25%. If the house is bought or built, repayable within a maximum period of 180
months (15 years). Repayable in equated monthly installments through fresh foreign
inward remittance or by debiting NRE/NRO/FCNR account in India. The repayment of
loan installment, interest and other charges can also be made by close relatives of the
NRI borrower resident in India, through their bank account.. The processing charge is
0.57% of the loan amount subject to maximum of Rs 15000/-
Security
 Equitable mortgage of the property to be purchased or built or renovated
 Property should be insured for adequate value with Bank clause
 Registered Memorandum in states whereever it is applicable.
4- Jewel Loan - IOB has linked the interest rate of Agriculture Term Loan Against
Jewellery(AGTAJ) Scheme with Repo linked Lending rate (RLLR) with effect from
10.09.2020, thereby reducing our Gold loan interest rate under AGTAJ scheme by 60
bps across all the slabs as under:
 Upto Rs. 3 Lakh – 7.05% at Present
 Above Rs. 3 Lakh upto Rs. 5 Lakh - 7.70% at Present
 Above Rs. 5 Lakh upto Rs. 25 Lakh - 8.15% at Present
Various Schemes
1. Agricultural Jewel Loan:
 Purpose: To meet Short-term production credit needs of farmers
 Limit: Maximum limit per borrower Rs. 10 lakhs
 Repayment: Bullet payment in one year

2. Agriculture Term Loan - Jewellery:

 Purpose: to meet Investment credit needs of farmers

 Limit: Maximum Limit Per Borrower Rs. 25 Lakhs

 Repayment: Maximum 3 years in monthly/Quarterly/Half yearly/Yearly

3. Jewel Loan SME:

 Purpose: to meet investment need in MSME - Manufacturing, Services and Retail
Trade sectors
 Limit: Maximum limit per borrower of Rs. 5 lakhs
 Repayment: Bullet payment in one year

4. Jewel Loan - Others:

 Purpose: to meet domestic/business needs
 Limit: Maximum limit per borrower of Rs. 25 lakhs
 Repayment: For loan upto 5 Lacs -bullet payment in one year and for loan above 5
lacs-in monthly EMIs with maximum 35 months
5- Career Dreams - This loan facility is only for those individuals who want to pursue
professional courses from reputed institutions in India for courses such as chartered
accountant/ Medicine? IAS/ IPS/ IFS etc and various career & skill development courses
like NIIT, APTECH, SSI, SPSS, SAS, SAP etc. Quantum of loan is from Rs.25000 to Rs.
200000. with the rate of interest of 9.30%. Repayment period for this is max 3 years
without any moratorium.

Security and other condition applied

 If salary is routed through our Bank, no security is required. However, in such cases
third party guarantee is mandatory.
 In case salary / pension is not routed through the Bank, the loan is to be fully
secured by collateral in the form of NSC, LIC Policies,
 Deposits, KVP etc. Third party guarantee is not required.
 Immovable property also accepted as security.
 The applicant shall be the father, mother, spouse / legal guardian of the aspirant.
 Loan extended for meeting tuition fees of son, daughter or spouse (Beneficiaries).

6- IOB Reverse Mortage Loan- A unique scheme which takes care of the financial
needs of senior citizens owning self-occupied residential house/flat for leading a decent
life during their twilight days. The purpose of this loan is medical expenses or
maintenance of family or meeting any other need like renovation, extension of property
or any other expenses relating to maintenance of the property. The eligibility criteria for
the applicant is Senior citizens completed 60 years of age owning a self-acquired, self-
occupied residential property (house or flat) located in India with clear and transferable
title, free from any encumbrance. The quantum of loan is depend upon the market
value of the property, age of the applicant. The bank will sanction the loan of 75% of
the market value of the mortgaged property. 45% of this eligible loan amount is
dispersed to the borrower as monthly annuity with maximum cap of Rs. 50,000/- and
the remaining 55% is apportioned towards interest accumulated during the loan period.
Repayment loan period of maximum 15 years.
Security-
 Registered memorandum of deposit of title deeds of the house (residential) property
against which the loan is granted.
 Commercial property will not be accepted as security.

7- Personal Loan – When an individual looking to buy consumer durables for his
personal use.. Hassle free personal loans for all individuals with regular income is more
than Rs.5000/- with maximum age limit of 60 years, 10 times of the gross salary or 90%
of the cost of article whichever is less, but not to exceed Rs. 5.00 lacs, Repayment of
the loan is made as Equated Monthly Instalments (EMI)
Security
Hypothentication on purchase of articles out of loan and a suitable 3rdparty guarantee

8- IOB Surya- To purchase off grid renewable solar energy equipment’s in India for
any Educational Institutions, Hospitals, Hotels/Restaurants such as Solar cookers, Solar
heaters, Home / Indoor lighting system etc. Quantum of loan amount is 80% on the
project cost which includes cost of the system, accessories, Transportation &
installation. With Minimum amount Rs. 1 lac to Rs. 10 lacs. At the rate of 12%. The
repayment period of loan is upto 5 years.

SECURITY

 For Loan up to Rs 1 lac, Hypothecation of Solar Energy Equipments (financed by the

Bank) along with third Party Guarantee
 For Loan above Rs 1 Lac, 100% Collateral security shall be obtained in any form as
under
o Mortgage of land /House/flat
o Security in the form of LIC policy/ NSC/ Term Deposits, etc.

9- IOB Passion- A term loan to finance the purchase of basic materials to pursue in ones
passion like sports kits, music instruments, painting materials, cameras, sewing
machines, etc and payment of coaching fees. Any individual with a proven skill in any
specific field like arts, sports, music, dance, painting, Photography etc has taken it as
their career or hobby and are in need of financial assistance to tone the their skill
further to excel in it or who wants to pursue such arts as a hobby against third party
guarantee/ collateral security.

 Eligible for all aged from 10 to 50 years.

 Maximum loan amount upto Rs.3 lacs.

10- Clean Loan- Employees in Government, Public Sector Undertakings, reputed

private enterprises, firms, companies etc. and confirmed in service. The take home pay,
after deduction of the proposed loan installment should be more than 50% of the gross
pay. LIC agents are also eligible to apply for the loan subject to conditions. Ten times of
salary or Rs.15.00 lac whichever is lower, if his employer undertakes to deduct the loan
installment from salary and remit to us or the salary is routed through the loan granting
branch. For LIC agents, the maximum loan is up to 10 times average monthly
commission or Rs.10.00 lakh whichever is lower. Repayment in a maximum of 60
months in case the loan is for 10 month salary and 36 months in case the loan is for 5
months salary.
Security
Two, third party personal guarantee, the salary of each guarantor being at least equal to
that of the borrower.
Documents Required
EApplication form, Salary certificate of applicant and guarantor with deduction
particulars, undertaking letter from employer to deduct monthly installment and
recover the dues from terminal benefit in case of necessity.

Other Conditions

 The employee should have a S.B. account in the branch from where the loan is
proposed to be availed.
 Salary of the employee should be routed through the S.B. account at the branch
where the loan is sanctioned.
 Undertaking letter from the employer undertaking to deduct from salary, loan
installment every month and remit to bank to be produced.
 Letter from the employer, undertaking to recover the dues from the terminal
benefits of the employee in case of death, retirement, or resignation to be produced.

COMMERCIAL LOANS

1- Working Capital Loans- he manufacturing / Service activity of the unit can smoothly
progress while adequate working capital funds are available. Our Bank provides
necessary working capital assistance to MSME units.
The quantum of working capital funds can be ascertained by looking into the working
capital cycle of the unit. The working capital limits can be availed by way of cash credit,
bills limit, Letter of Guarantee, Letter of Credit etc. The details of interest rates for
various categories of SME advances are available separately.
Security / Third Party Guarantee:
Bank will not insist for collateral security / Third Party Guarantee for total credit
limits upto Rs.10 lakhs for SME borrowers.  In respect of credit limits above Rs.10 lakhs
and upto Rs.200 lakhs Collateral Security / Third Party Guarantee may be waived on
deserving cases and those limits will be covered under Credit Guarantee Trust for Micro
and Small Enterprises (CGTMSE).
2- Loans for Professional & Self Employed - who possess the skill which has been
estimated as professional in the opinion of the Bank shall be considered for financial
assistance. Example: Medical Practitioners, Dental Surgeons, Accountants, Engineers,
Craftsmen, Construction contractors, Management consultants etc
Loans shall be considered:

 For purchase of instruments / equipments viz. X-ray equipment for a Medical

Practitioner; Concrete mixer for a construction Engineer; Computers for chartered
accountants etc. 
 For working capital requirements viz. for periodic purchase of raw material and other
items by Craftsmen etc.
 Renovation of premises viz. construction / renovation of clinics for Medical
practitioners: construction / renovation of Office for Chartered Accountants etc. 

3- MSME Credit Schemes - At a Glance

IOB SME EASY MSME units including Retail Traders for Working Capital
Requirement Against Land, Buildings. Maximum: Rs. 5.00 Crores

IOB SME Existing Micro and Small Enterprises for Meeting Working Capital
INSTA FUND Requirement to Execute Additional / Bulk Order Over and Above
Regular Orders. Maximum: 50% of Existing WC.

IOB MICRO Only New Micro Units Seeking Credit Facilities. Only Prime Security
ONE Created Out of This Loan. No Collateral Required.
Maximum: Rs. 50.00 Lacs

IOB SME ADD Existing SME Borrowers with Good Track Record. Maximum: Rs. 25
ON Lacs.

IOB MSE PLUS Micro and Small Enterprises Engaged in Manufacturing / Service
Activities. For Construction / Purchase of Work Sheds / Factory
Premises, Acquisition of Plant and Machinery / Equipment, Working
Capital Needs. Maximum: Rs. 1.00 Crore.

IOB SME All MSME Units, New and Existing Facing Shortfall in Promoter's
EQUIP-P Contribution (Margin Money) for Capital Investments.
Maximum: 10% of Project / Capital Cost or Rs. 50. 00 Lacs.

MSME JEWEL Individuals Running Small Units Engaged in Manufacturing /

LOAN Services / Retail Trade Sectors. For Meeting Short Requirement.
Maximum: Rs. 10.00 Lacs.

SME 300 Micro and Small Units Engaged in Manufacturing / Services / Retail
DAILY Trade Sectors. To Meet All Business Needs Including WC
 Requirements and to Take Up Income Generating Activities.
Maximum: Rs. 2.00 Lacs.

IOB's ARTISAN All Existing Artisan's Borrowers Enjoying Credit Limit upto Rs. 2
CREDIT CARD Lacs. To Provide Adequate and Timely Assistance to Meet the
Investments and Working Capital Requirement. Maximum: Rs. 2.00
Lacs

IOB CA To Chartered Accountants for Purchase of Car, Construction of

Office Premises, Acquire Ready Built Office Premises, Cover Cost of
Land and Construction etc. Maximum: Rs. 1.25 Crore

IOB ENGINEER To Civil Engineers for Construction of Office Premises, To Purchase

Furniture and Fixtures, Fittings and Office Equipments Such as
Computers, Printers, Plotters, Books & Other Accessories etc.

IOB Qualified / Registered Individual Medical Practitioners Recognized

SANJEEVNI by Indian Council of Medical Research, Including Dental Surgeons,
Polyclinics etc. Maximum: Rs. 5.00 Crore.

IOB SME To Government Registered Contractor for Executing Contract

CONTRACTOR Works. Maximum: Rs. 5.00 Crores.

IOB SME Qualified Women (Minimum Graduate) Who Desire to Start a Unit
MAHILA PLUS in the Age Group of 21 to 50. Maximum: Composite Loan upto Rs 2
Crores for a Manufacturing Enterprise and Composite Loan upto Rs.
1.00 Crore for a Service Enterprise.

WEAVERS Existing Handloom Weavers for WC and TL Requirement of the

MUDRA Weaver. Maximum: Rs. 10.00 Lacs

Fee-based services offered by Indian Overseas Bank

Indian Overseas Bank (IOB) offers various services to its customer. In return for these
services, the bank charges a very nominal amount. A clear description of these services and
the fee IOB charges for these services are discussed below.

1. NEFT

The National Electronic Funds Transfer (NEFT) is a nationwide electronic payment

system that allows for direct one-to-one payments. You can use this service to
 electronically transfer payments from any bank branch in the country to any
individual who has an account with another bank branch that participates in the
NEFT scheme. IOB also provide these services and charges for these facilities are as
follows:

i. NEFT via Internet

SB A/c Other than SB A/c

Inward Free Free
Upto Rs. 10,000/- Free Rs. 1/-
Above Rs. 10,000/- and Free Rs. 3/-
Rs. 1,00,000/-
Above Rs. 1,00,000/- Free Rs. 11/-
and upto Rs. 2,00,000/-
Above Rs. 2,00,000 Free Rs. 19/-

ii. NEFT through home branches

Charges
Upto Rs. 10,000/- Rs. 1.50/-
Above Rs. 10,000/- and Rs. 4/-
Rs. 1,00,000/-
Above Rs. 1,00,000/- Rs. 14/-
and upto Rs. 2,00,000/-
Above Rs. 2,00,000 Rs. 24/-

2. RTGS

Real-time gross settlement is abbreviated as RTGS. It is a real-time, gross settlement

money transfer technology that allows monies to be transferred from one bank
account to another. The term 'real-time' means that RTGS transactions are executed
as soon as the sender initiates them, and 'gross settlement' means that the
instructions for the transfer of funds are carried out one-to-one. In IOB bank a
customer needs to do a minimum transaction of Rs. 2,00,000/- to avail of RTGS
services.

Charges
Rs. 2,00,000/- and upto Rs. 24/-
Rs. 5,00,000/-
Above Rs. 5,00,000/- Rs. 49/-

3. IMPS/UPI/Net banking
 IMPS stands for Immediate Payment Service. It is an instant fund transfer service
that allows for quick fund transfers. UPI is another payment method that stands for
Unified Payment Interface. Both UPI and Net banking use IMPS technology for
transactions. For IOB customers the charges for these services are as follows:

Charges
IMPS UPI
Upto Rs. 10,000/- Rs. 2.5/- Rs. 1/-
Rs. 10,000/- and upto Rs. 5/- Rs. 1.5/-
Rs. 1,00,000/-
Above Rs. 5,00,000/- Rs. 15/-

4. ECS Mandate

For transactions that are repetitive and frequent, ECS is an electronic form of
payment/receipt. Institutions utilise ECS to make bulk payments for dividend,
interest, salary, pension, and other distributions etc., or to collect large sums of
money for telephone, power, or water bills, cess/tax receipts, loan instalment
repayments, and regular mutual fund contributions etc. ECS allows for large-scale
money transfers from one bank to another. Using the services of an ECS Centre, you
can transfer funds from one bank account to many bank accounts or vice versa.

Particulars Charges
ECS/NACH registration Rs. 125/-
mandate
ECS inward and outward NIL
ECS failed mandate Rs. 350/- per occasion
SFMS Charges Rs. 1000/-
ECS return charges Inward return Upto 1 lakh – Rs. 150/-
Outward return Above 1 Lakh – Rs.400/-

5. Demand Draft (DD)

A demand draught, sometimes known as a DD, is a bank-issued negotiable

instrument. The term "negotiable instrument" refers to a document that promises a
specific amount of payment while also providing the payee's name. In any
circumstance, it cannot be transmitted to another person.

Charges of DD in IOB are:

S.No. Particulars Charges

a. Issue of DD
Upto Rs. 5,000/- Rs. 25/-
 Above Rs. 5,000/- upto Rs. 10,000/- Rs. 60/-
Above Rs. 10,000/- upto Rs. 10,000/- Rs. 5/- per Rs. 1000/- min 80/-
Above Rs. 1,00,000/- Rs. 5/- per Rs. 1000/- min Rs.
500/- max. Rs. 15,000/-
b. DD cancellation
DD value upto Rs. 50/- Nil
DD value above Rs. 50/- to Rs. 100/- Rs. 30/-
DD value above Rs. 100/- to Rs. 1000/- Rs. 80/-
DD value above Rs. 1,000/- Rs. 100/-
c. Revalidation of DD Rs. 125/-
d. Replacement/ Duplicate DD Rs. 150/-

6. ATM Transactions

Automated Teller Machine (ATM) enables bank customers to withdraw money from
their accounts. Customers can use their debit cards to do the transactions. There are
no charges for upto 3 transactions per month in the metropolitan city (Delhi,
Mumbai, Hyderabad, Kolkata and Bangalore). For other cities 5 transactions per
month are free. After 3 transactions Rs. 20/- would be charged per transaction and
this applies to all cities.
(Applicable on only Saving Bank a/c rest other would be Rs. 20/- per transaction)

7. Debit Card

To make differentiation at a personal level IOB issues various cards. Some of them
are VISA-Classic, Rupay Classic, Master-Classic etc. Each card has its service charges
which are mentioned below.

S.No. Description Charges

a. Issuance charges
Visa-Classic Rs. 100/-
Rupay- Classic Free
Master- Classic Rs. 100/-
Rupay- Platinum Rs. 150/-
Visa- Gold Rs. 200/-
Visa- Platinum Rs. 250/-
Visa- Signature Rs. 350/-
Rupee- Prepaid Card Rs. 75/-
b. Replacement Charges Rs. 150 upto Rs. 750/-
c. Annual maintenance Rs. 150 upto Rs. 750/-
charges

8. Credit Card
 A credit card facility is also available in IOB. The bank charges no annual fee or
hosting fee. But interest roll overcharges are 30% (annualized). If credit is used to
withdraw cash from ATM, then Rs. 22.50/- is applicable per Rs. 1000/-. If other ATM
banks are used for this transaction then Rs. 100/- would be charged. The annualized
rate charged by the bank is quite low as compared to other institutions like American
Express, Standard Charter etc. which charge around 3% per month.

PAYMENT AND TRANSFER SYSTEM OF INDIAN OVERSEAS BANK

Introduction
Digitization across streams, coupled with the ongoing Covid-19 crisis, have made people
more online savvy for undertaking their daily activities like shopping, internet banking etc. A
convenient and quick way of managing banking transactions for individuals and businesses
alike are NEFT, RTGS and IMPS. These transactions are always safe and secure. Indian
Overseas Bank (IOB), one of the leading nationalized banks in India with headquarters in
Chennai offers its customers various fund transfer choices including National Electronic
Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and Immediate Payment Service
(IMPS). Customers can do any of these fund transfers by visiting IOB’s branch, internet
banking or IOB mobile banking app.
Let us understand the various key features of NEFT/RTGS/IMPS at IOB to help us make the
right choice for our fund transfers.

NEFT

IOB Home Branch

Transaction Limit and Charges

Transaction Amount  NEFT Charges (excluding GST)

Up to Rs 10,000 Rs. 1.50

Rs. 10,000 – Rs. 1 lakh Rs. 4

Rs. Rs. 1 lakh – Rs. 2 lakh Rs. 14

Above Rs. 2 lakhs Rs. 24

Internet Banking
Transaction Limit and Charges
 Transaction Amount  NEFT Charges for SB Account NEFT Charges (excluding GST)

Up to Rs 10,000 Free Rs. 1

Rs. 10,000 – Rs. 1 lakh Free Rs. 3

Rs. Rs. 1 lakh – Rs. 1=2 lakh Free Rs. 11

Above Rs. 2 lakhs Free Rs. 19

Timings

Days Time Slot

Monday - Friday 8.00 am to 7.00 pm

Saturday 8.00 am to 1.00 pm

NEFT services not available on bank holidays, including, 2nd and 4th Saturday

RTGS 

IOB Home Branch

Transaction Amount RTGS Charges (excluding GST)

Rs. 2 lakhs – Rs. 5 lakhs Rs. 24

Above Rs. 5 lakhs Rs. 49

Internet Banking
Transaction Amount RTGS Charges (excluding GST)

Rs. 2 lakhs – Rs. 5 lakhs Rs. 24

Above Rs. 5 lakhs Rs. 49

 Timings

Days Time Slot

Monday – Saturday 8.00 am to 4.30 pm

RTGS services not available on 2nd and 4th Saturday

IMPS

Internet Banking/Mobile Banking

Transaction Amount IMPS Charges (excluding GST)

Up to Rs 10,000 Rs. 2.50

Rs. 10,000 - Rs. 1 lakh Rs. 5

Rs. 1 lakh – Rs. 2 lakhs Rs. 15

Timings: 24/7 service including bank holiday

IOB Fund Transfer

IOB allows quick, secure and hassle-free fund transfer from bank to bank. This process is
undertaken through electronic mode through wire transfer technique which is under the
purview of the Reserve Bank of India (RBI)
IOB Bank NEFT
NEFT is an electronic one-to-one payment facility regulated by the Reserve Bank of India to
allow money transfer from bank to bank. Money can be transferred from an
individual/business account in IOB to another bank account through branch visit, internet
banking or IOB mobile app.
Steps to Initiate IOB NEFT Fund Transfer
Login on IOB portal with respective username and password
Go to the ‘Remittances’ tab and click on ‘Add Payee’
Click on ‘Other Bank Account’
Key in the payee/beneficiary particulars correctly like name, account type etc
 Enter OTP provided
Click ‘Approve Payee’
Payee account gets activated within 24 hours after which funds can be transferred to
their account
Now, click on ’Remittances’
Click ‘Fund Transfer’,
Click the ‘Other Bank-NEFT’ tab
Click the ‘Proceed’ button
Key in particulars like ‘Pay from’, ‘Sender information’ amount etc. Click the
‘Proceed’ button
Key the ‘Transfer Pin’ 
Click the ‘Transfer Funds’ tab
Enter OTP received 
After OTP confirmation, the transaction is complete
IOB RTGS
RTGS System refers to a real-time settlement of funds from an individual account to the
beneficiary account. This mechanism is totally governed by the Reserve Bank of India of
which IOB is a member. Under RTGS, you get an immediate transfer of funds. IOB has Instar
emit – its RTGS facility for both individual and corporate customers for the purpose of
transferring their money from their accounts with IOB to other bank customers. IOB also has
the facility to receive RTGS transactions for its customers from other RTGS enabled branches
of banks.
IOB has enabled its customers to make RTGS by having a single IOB RTGS form for making
the transaction. IOB customer can also have the IOB RTGS form downloaded from the
bank’s online portal.
IOB RTGS Form
IOB RTGS form can be filled through branch visit or the same can be downloaded from the
bank portal. Below particulars are required to be filled.
Amount to be transferred
IOB branch name and code
RTGS charges
Account holder name and contact details 
Beneficiary particulars like name, bank, branch address, account type, account
number, IFSC code and mobile number
Enter how the transfer to be made, i.e. through cash, cheque or direct debit from
the bank account with relevant particulars
Option to send a brief message by the IOB account holder to the beneficiary through
the IOB RTGS form is available
Once particulars are filled, form to be submitted
IOB IMPS
IMPS is an instant and fast mode of money transfer from one account to another, with the
service being available 24/7 365 days. IMP is one of the leading Indian banks which offer
IMPS facility to its customers, which is available to all the bank customers. IMPS facility at
IOB is available only on internet banking and mobile banking.
To avail of this facility, 
IOB customers should first register their mobile numbers with the bank
Customers should have valid MMID linked to their primary IOB bank account
Valid MPIN to transfer funds from one account to another
Steps to transfer funds via IMPS at IOB

Internet Banking
Log in to the IOB bank portal with username and password  
Click on the “Fund Transfer” tab
Click the ‘IMPS Funds Transfer’ tab
Select beneficiary from the drop-down beneficiary list to whom funds to be
transferred
Key in the amount and confirm the transaction
On successful inhiation of transfer, confirmation will be received from IOB via SMS
and email

Mobile Banking
Download the IOB app on your mobile 
 Log in to the IOB bank website with username and password 
 Click the ‘Fund Transfer’ option and select ‘Other Bank using IMPS’.
 Click ‘Using IFSC/AC No.’ to transfer funds through the IFSC code
o  Select beneficiary to whom funds to be transferred
o  Key in the amount and confirm the transaction
o On successful inhiation of transfer, confirmation will be received from
IOB via SMS and email

THIRD PARTY PRODUCTS OF INDIAN OVERSEAS BANK

IOB Suraksha 
It is a personal accidental death cover tailor-made for our IOB customers in tie up with our
Insurance Partner M/universal Sompo General Insurance Co Ltd for providing 1.Plan A -
Rs.5.00 Lakhs at a nominal premium of Rs.100/-+ Service Tax and 2.Plan B -Rs.10.00 Lakhs at
a nominal premium of Rs.200/-+ Service Tax
Salient Features of the Product:

 Product is available for all the Savings Bank Accounts customers (including SB NRE &
SB NRO) / Current Account customers of Indian Overseas Bank.

 Entry age under the product is from 18years to 70 years and it can be renewed up to
75 years of age subject to payment of renewal premium by the customer.

 Same premium for all Age Group of customers.

 This policy can be sold across the counter to customers having SB/ CA accounts from
any Branch of IOB. (For CC/Loan customers the premium should be debited only from
his/her SB/CA accounts and not from the CC or Loan accounts).

 Simple Claim procedure and the claim can be intimated with any of the IOB Branches
or of USGIC Branch across Pan India for further processing.

 The geographical scope of this policy will be worldwide; however, the claims will be
settled in India in Indian rupees only.

IOB Health Care Plus

It is a unique health/ mediclaim cover offered by Universal Sompo General Insurance in

association with Indian Overseas Bank. The IOB Health Care Plus is a complete health
Insurance Plan that covers Proposer, spouse, two dependent children, dependent parents
and unlike any other regular policy, wherein a family has to take individual policies for each
member, this unique family floater gives you the flexibility of taking one policy that covers
the entire family under a single sum insured.

The Policy takes care of the hospitalization expenses, subject to maximum Sum Insured, in
respect of the following eventualities:

a. Sudden illness

b. An accident

c. Any surgery that is required in respect of any disease.

Additional features

1. Choice of Sum Insured ranges from Rs 50,000 to Rs 5,00,000 in multiples of Rs 50,000.

2. Enlisted Day Care procedure (procedures covered without 24 hrs hospitalization)

covered. 
3. Maternity Benefit - covered up to 5 % of SI with waiting period of 9 months 
4. Pre Existing Illness - Covered after 48 months of continuous coverage
5. Ambulance cover - Covered up to 1 % of basic SI or Rs 1000/- per claim 

6. Pre Hospitalization & Post Hospitalization- Covered for 30 & 60 days, before & after
hospitalization respectively subject to availability of Sum Insured.

7. Hospital Cash to Parents- In case of Hospitalization of Children up to Age 12 years Cash

allowance of Rs.100/- per day subject to a maximum of Rs.1000/- will be given to account
holder.

8. Cost of Health checkup- The insured shall be entitled for reimbursement of cost of 1% of

the amount of average Sum Insured  for health check-up once at the end of block of every
Three Policy years (under this scheme) provided there are no claims reported during the
block.

9. Funeral Expenses-In case of death of any of the insured persons following hospitalization
with valid claim under the Policy, Funeral expenses of Rs.1000/- will be paid under the
Policy.

10. Personal Accident Cover - Available on payment of additional premium 

Health Care PLUS
The Scheme: The scheme provides for Mediclaim Insurance cover, which is available to all
account holders maintaining a S.B. or C.D account in the age group of 18-65 years. The
scheme is available to NRI customers also. However, the cover is available for treatment in
hospitals in India. The Mediclaim Insurance cover is provided by Universal Sompo General
Insurance Company Ltd(USGI). 

 The health insurance cover is available for a very low premium, which is far below
the normal premium if the policy is taken individually by the account holder, directly
from Insurance company.
 Entire family of account holder, spouse and two dependent children are covered
under Floater policy. Even parents of account holder are covered for additional
premium.
 Coverage option from Rs. 50,000 to Rs.5.00 lakh is available.
 Upper age limit for entry is up to 65 years. However, renewals are allowed up to 80
years. Age limit of dependent children - For male up to 21 years; For female up to 25
years or till their marriage whichever is earlier.
 Preexisting diseases are not covered. However, the preexisting disease is covered in
case of three continuous claim free years. 
 Ambulance charges up to Rs. 1,000 is reimbursable per policy period.
 Cost of health checkup allowed @ 1.00% of sum assured after completion of 3
continuous claim free years of policy.
 In the case of Hospitalization of children below 12 years a lump sum amount of
Rs.1,000 as out of pocket expenses to any of the parent is payable per policy period.
 Maternity benefit and baby care expenses are also reimbursed up to 5% of sum
insured.
 Treatment of NRIs in Indian Hospitals is allowed.
 Treatment in hospitals in Nepal and Bhutan are also covered in Indian Currency.
 Personal Accident death cover is available for additional premium.
 Income tax benefit is available under section 80D for the premium paid.
 Cash less access to networked hospitals is available through Third Party
Administrator (TPA).
 In case of death in hospital, funeral expenses are reimbursed up to Rs.1000 over and
above the sum insured subject to original illness/accident claim admitted under the
policy.

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