LOAN AGAINST PROPERTY PRODUCT, POLICY SNAPSHOT

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1 IndoStar Capital Finance Limited LOAN AGAINST PROPERTY PRODUCT, POLICY SNAPSHOT

2 About IndoStar Capital Finance Limited IndoStar Capital Finance Limited ( IndoStar or the Company ), an NBFC is registered with the Reserve Bank of India (RBI) as a Systemically Important Non Deposit Accepting Non-Banking Financial Company (NBFC- ND-SI). IndoStar is a wholesale credit institution that offers a wide bouquet of debt products. IndoStar has been established as a premier independent wholesale credit institution leveraging the experience of global best practices and local economic development to meet the growing credit requirements of Indian corporates. IndoStar is strongly capitalized with a net worth in excess of INR 1,190 crores. With the present focus on providing innovative and structured solutions for debt-related requirements of Indian companies, IndoStar aims to widen its relationship within the Indian financial ecosystem and we have entered in SME retail space. To start with, we are focussing on Loan Against Property Business and we value your contribution with us. Our sponsors are reputed Global Financial Institutions and Private Equity Players. 2

3 Products LOAN AGAINST PROPERTY (LAP) Loan Against Residential Property : Self Occupied / Rented / Vacant : This scheme provides term loans to Self Employed Non Professionals & Self Employed Professionals like Doctor, Architects & Chartered Accountants. Loan Against Commercial Property : Self Occupied / Rented : Enables customers to meet working capital, growth capital or business expansion. NON-RESIDENTIAL PURCHASE LOAN If customer intends to purchase commercial property for self occupation or future leased out income, basis customers financials eligibility is drawn. 3

4 Highlights of Product Higher tenor of 15 years. Loan against Residential and Commercial properties. Loan to Value depending on type of collateral ranges from 60%-70%. Differentiated product programs Declared income and Derived income. Multiplier on existing loans proposed for Buy over. Approval TAT guaranteed. Credit Shield with Insurance companies. Nil foreclosure charges after 12 months. 4

5 Product Programs & Policies DECLARED INCOME PROGRAM 1. Documented Income program Vanilla Income Program DERIVED INCOME PROGRAM 1. Debt Consolidation program 2. Gross Profit Method for traders & Manufacturers 2. Mortgage BT + Top Up 3. Gross Turnover program for professionals 3. Banking Product 5

6 Income Assessment Process for Declared Income Program VANILLA INCOME PROGRAM ELIGIBILITY CALCULATION Net Income (as declared in tax return) + Depreciation + Rental Income ( if any) + Salary /interest paid to partner/director + Interest on loans to be added back ( obligation or getting closed ) + Other Income ( interest / agriculture /dividend) = Cash Profit Self Employed : 2 years financial assessed and verified Latest 6 months banking assessed and verified Rental to be verified from tax return / bank credit / rent agreement Consistent Income (and non speculative) considered Loan Details from schedules and Sanction letters Minimum Loan amount of INR 30 Lacs and Maximum of INR 500 Lacs FOIR of up to 150% on cash profit EASY DOCUMENTATION 6

7 Income Assessment Process for Declared Income Program contd... GROSS PROFIT METHOD WHAT For manufacturers and traders Actual gross profit or 15% of turnover (whichever is lower) to be considered FOIR up to 100% on the profit considered Tenor up to 15 years Rental income can be clubbed with profit Can add more than one firm to calculate the eligibility Turnover should be > INR 2 Cr in last two years Minimum Cash profit of INR 5 Lacs in financials Business vintage of 5 years Increasing trend of turnover Minimum Loan amount of INR 30 Lacs; and Maximum of INR 500 Lacs GROSS TURNOVER PROGRAM WHAT For self-employed professionals (Doctors, Architects and CAs) Multiplier of 3, 2 and 1.5 given to doctors, architects and CAs on their professional receipts to calculate loan amount POS of all other loans to be deducted to calculate the final eligibility. (Loans getting closed in 12 months will be ignored.) Tenor up to 15 years Copy of professional degree Business vintage of 5 years Increasing trend of receipts Minimum Loan amount of INR 50 Lacs; and Maximum of INR 500 Lacs 7

8 Income Assessment Process for Derived Income Program DEBT CONSOLIDATION PROGRAM WHAT Applicable to manufacturers/traders and professionals Maximum 9 Loans can be given Multiplier Multiplier will be given to > INR 3 Lacs loan EMI Multiplier of 1.5 will be given to >12 months old loan EMI Multiplier of 1.75 will be given to >18 months old loan Negative EMI Multiplier of 1 to the loans which are not getting closed Tenor up to 12 years Maximum 2 bounces in last 12 months and 3 in last 18 months, should be paid within 30 days. No Bounce in last six months. RTR of all the loans should be on record or verified through banking Consolidated EMI post IndoStar loan should not exceed 1.5 times of EMI being paid in last 6 months Two year financials are a must Equipment loan related to business will not be considered as obligation and will not be given multiplier Minimum Loan amount of INR 30 Lacs; and Maximum of 500 Lacs EMIs with pending instalments < 12 months and cumulative O/S of < INR 10 Lacs are not required to be closed 8

9 Income Assessment Process for Declared Income Program contd... MORTGAGE BT+ TOP UP PROGRAM WHAT For Manufacturers/traders and professionals with running mortgage loans Mortgage EMI Multiplier MOB Multiplier >36 2 Repayment track with sanction letter required Non PDC backed and BT from scheduled cooperative banks are not allowed Tenor up to 15 years Last 2 year financials are required No bounces in last 9 months and never in DPD Minimum Loan amount of INR 30 Lacs; and Maximum of 500 Lacs Increasing trend of turnover and Positive Net Worth BANKING PROGRAM WHAT Average of 5,10,15 and 20th of month is taken for last 12 months Average balance should be twice the proposed EMI 12 months banking is required Tenor up to 10 years 2 bank accounts can be added meeting the norms 3 customer initiated credit transactions per month for last 12 months whereas total 5 transactions (Dr & Cr) CC utilization should not exceed above 90% Loan credits and one time credits in banks to be excluded for calculating avg. bank balance Existing obligations not exceeding EMIs equal to propose EMI may be ignored for eligibility calculation Cash profit and increasing trend of turnover Minimum Loan amount of INR 30 lacs; and Maximum of 300 Lacs 9

10 For any clarification Please contact us REGISTERED OFFICE Room No. 6, 4th Floor, Commerce House, 2A, Ganesh Chandra Avenue Kolkata CORPORATE OFFICE One Indiabulls Centre, 17th Floor, Tower 2A, Jupiter Mills Compound Senapati Bapat Marg, Mumbai Tel No. : Fax No. : icf.legal@indostarcapital.com Website :