CRN/

UCO BANK
2024-25
Head Office (A Govt. of India Undertaking)
MSME Department Honours Your Trust Circular No.
10, BTM Sarani, 2nd Floor CHO/MSME/17/2024-25
Kolkata-700001 Date: 23/07/2024

To All Branches/Officesin India

Sub UCO Abhinandan Scheme

To cater the furnding requirements of MSMEs, Bank has introduced several schemes from
time to time.

Introduction of a new scheme namely "UCOAbhinandan" will serve twin objectives i.e.
bringing back customers who had left us previously and takeover of quality borrowal
accounts from other lenders, which in turn willalso help Bank in mobilizing quality MSME
business.

Accordingly,Departmentplaced a memorandum before Risk Management Committeeof

the Board (RMCB) and Boardof Directors for approvalof "UCO Abhinandan"Scheme and
the same has been approved by RMCB and Board of Directors in its meeting dated
30/05/2024.

Department placed a note before Asset Liability ManagementCommittee (ALCO) for

Approvalfor Rate of Interest Matrix for "UCOAbhinandan" Scheme.ALCO in its meeting
dated 26/06/2024has approved the same. -6
72
15

F .NO
Salientfeaturesof UCOAbhinandanScheme
JU
N L is enclosed as AnnexXUre-l.
,P

AR
RI
AllBranches/Officesare herebyadvised
NA
M to take a carefulnote of the guidelinesand ensure
E-
S

its meticulous compliance.

(P. S. Jha)
General Manager
MSME &Mid Corporate K
MSME Dept. *

Encl: As above
 Annexure-I

Salient Features of UCO Abhinandan Scheme

SI Scheme Features
Particulars
No
Individual, Proprietorship Firm, Partnership Firm, Limited Liablity Partnership,
Joint Venture, Private/PublicLimited Company, HUF, Society, Trust, Institution,
Association.
Existing facility availed by customers from other lenders should not be under
SMA-1/SMA-2category during last 12 months.
Borrowers having past history of NPA with other lenders not to be considered
under this scheme.
Group account(s) of CUstomer should not be SMA-1/SMA-2/NPA with our
1 Eligibility Bank/Other lenders.
This condition (SMA-1/SMA-2/NPA)should be cOunter verified from CIBIL/CMR
and/or CRILC report, as applicable.
" Internal Rating/Score Card Model is mandatory depending on the credit
exposUre.
Lending under this scheme will be allowed only in those acCOunts which are
having internal rating up to UCO-5 and external rating of "BBB" and above.
Relaxation for takeover of accOunt having external rating of "BB" may be
allowed by HLCC-GM.
To provide credit for Working Capital and/or Term Loan requirement (Fund
Basedand Non-Fund Based)to MSME (as defined under MSMED Act 2006 with
15
further revision in definition of - 6MSME effective from 01.07.2020, as per Gazette
72
O.N
Notification dated 26.06.2020
L,
PF communicated subsequently) borrowers
engaged UN
in Manufacturing/Trading/Service
J related activities having valid
AR
RI
2 Purpose Udyam Registration
ME
- S Number (Mandatory) and GST Number (if applicable).
NA
Takeover of quality accOunts from other lenders.
Additional need based credit facility in the form of Working Capital and/or
Term Loan for purchase of land and constructionof building thereon and also
for purchaseof plant and machinerybased on project cost.
" New to Bank (Takeover cases).
3 Target Group Customersdealing earlierwith our Bank and taken over by other lenders.
Existing customers of Bank having credit facility with other Banks.
Consumer CIBIL " As per Head Office, Risk Management Department Circular No.
Score/Commercial
4
CIBIL MSME Rank
CHO/RM/48/2023-24dated 28/02/2024 and any amendments made thereof
from time to time.
(CMR)
Fund Based
Working Capital
Term LOan
Non-Fund Based
" Letter of Credit
5 Nature of Facility " Bank Guarantee

Note
/ Customersavailing facility under this schenme is pernmittedto avail TReDS facility
(Bills DiscountingFacility).
V Only Non-Fund Based Facility is not allowed under this scheme.

Page 1 of 14

MSME Dept.
 S Scheme Features
Particulars
No
Minimum: Z100 Lakhs
Maximum: 75000 Lakhs
Loan QUantum
Maximum expoSure under this scheme by way of fund based and/or non-fund
based facility shall not exceed 50 Crore per borrower entity.
Working Capital:25% (For Stocks/BookDebts/Receivables)
Term Loan :25%
Margin on Letter of Credit/Bank Guarantee
. Minimum 25% cash margin (ZLCC can allow reduction in cash margin by
maximum 15% so that post reduction in margin requirement, effective cash
margin will be minimum 10%).
"Cases wherein CGTMSE Coverage forms a part of overall security, in such
instancesLC/BG facility can be sanctionedwith 25% cash margin.
7 Margin Cash Margin DefinedAs
1) Deposit in Savings/CurrentAccOunt duly lien marked in Bank's favour on the
respective amOunt.

2)Term Deposit/RecurringDeposit duly lien marked in Bank favour.

Note
During Takeover of Term Loan account from other lenders, no separate margin
is required.
"Margin stipulated above, in case of Term Loan, is for additional facility
requested by customer during takeover
72
15
of account.
Assessment of -6
.N O
8 As per extant Bank guidelines.
L,
PF
Credit Facility UN
RJ
RIA
9 Financial Ratio As per extant Bank Eguidelines.
-S
M
NA

10 Drawing Power
Drawing Power (DP) to be allowedagainst value of Stocks and Book Debis after
deduction of applicable margin.
Working Capital
12 Months. To be renewed yearly.
Term Loan
Term Loan repayablein 144 Months(Maximum) including moratoriumperiod of 12
Months (Maximum) from the date of first disbursement or after moratorium period,
if allowed. Interest to be serviced during moratorium period. Tenor of the loan to
be aligned with the projected cash flow/life of the project.
Auto Recovery of Principal will be in Equal Monthly Installment and auto
recovery of interest will be on as and when applied basis in lieu of
11 Repayment SI/NACH.Branch to mandatorilyensure the same.
Note
" While consideringtakeover of Term Loan account from other lenders it should be
ensured that loan tenor allowed commensurate with residual loan tenor as per
originalsanction of existing lender.
" Cases wherein customer is not maintaining Current Account with our Bank.
Branch to ensure lo open Current Account for auto recovery of monthly
instalment and inlerest.

Page 2 of 14

MSMEDept.
H.
SI Scheme Features
Particulars
No
"Guidelinesof "UCO Abhinandan" Scheme stipulate auto recovery of principal in
applied
equal monthly instalment and auto recovery of interest on as and when
basis,hence this should be made apart of sanction letter for acknowledgement
sanction.
by the borrower while accepting terms and conditions of
" Lending under this scheme will be allowed only in those gccounts which are
having internal rating up to UCO-5 and external rating of "BBB" and above.
Relaxation for takeover of accOunt having external rating of "BB" may be
allowed by HLCC-GM.
12 Credit Rating . UCO-5 rated account to be vetted by Head Office, Risk Management
Department.
Other Credit Rating related guidelines to be followed as per extant Bank
guidelines.
Primary
Working Capital limit to be secured by hypothecation of stocks and
receivables.
" Term loan to be secured by charge on assets created out of Bank finance.
Receivables up to 120 days are allowed. ZLCC and above committee may
allow receivablesup to 180 days on case to case basis on merits.
Security Coverage
Charge by way of mortgage should be created on immovable security i.e.
Land and/or Building offered as primary/collateralsecurityor on any other liquid
security.
" Minimum Value of SARFAESI Compliant immovable property/liquid security
[liquid security should be in the6721form
5 Bank's own Deposit (FD/RD)/NSC/KVP/Life
Insurance Policy haing requisite
PF
. N O
-
value (Current Value/SurrenderValue, as the
Case may be)]shouldJUbe
N L 50% of the proposed expoSure.
,
R
A
In case of vacant
ME
- S plot, it shollbe ensured that property is boundarized, well
RI

demarcated NAand having approachable road and should be SARFAESI

compliant.
Agricultureland should not be accepted as security under this scheme.
CGTMSE COverage allowed under this scheme. limit is covered under Hybrid
13 Security
Security product of CGTMSE. In such case minimum security (land and building
held as Primary/Collateral)requirementwill be 40% of credit limit.
" As per Hybrid Security norms by CGTMSE w.e.f. 01/04/2018,Bank may obtain
collateralsecurity for apart of credit facility, whereasthe remaining part of
credit facility can be covered under Credit GUarantee scheme of CGTMSE.
In terms of CGTMSE Circular No. 220/2022-23 dated 31l/03/2023 Maximum
eligible limit for coverage under CGTMSE is Z500 Lakhs.
" Cases wherein CGTMSE COVerage forms a part of overall security, in such
instances LC/BG facility Can be Sanctioned with 25% cash margin.
" CGPAN to be obtained invariablyand Guarantee Fee must be paid to CGTMSE
before disbursement of loan.
CGPAN with gUarantee cover code "CGMSE" must be updated in fingcle
before disbursement of loan.
CGTMSE fee to be borne by the borrower.
No Third Party GUarantee to be obtained in case of account covered under
CGTMSE but personal guarantee of
Individual/Proprietor/Partner(s)/
Promoter(s)/Director(s)/Promoter Director(s)/Whole Time Director(s) of Firm/
Company/Karta/KeyPerson(s) incase of Society/Trust/Institution/Association
to
be obtained.

Page 3 of 14

MSMG Dept.
AHO
SI Scheme Features
Particulars
No
" Under "Hybrid Security" product of CGTMSE, extant guidelines of CGTMSE must
be followed.
Industrial property may include Factory Land along with Building excluding
factory shed in the name of MSME unit or its Proprietor/Partner(s)/Director(s)/
Promoter Director(s)/Whole Time Director(s)of the Firm/Company/Group/Sister
concern of the MSME Unit/HUF/Society/Key Person(s) of Society/Trust/Key
Person(s) of Trust/Institution/Key
Person(s) of Institution/Association/KeyPerson(s)
of Association/Closerelative(s) of applicant(s)acceptableto the Bank.
While consideringIndustrialProperty/FactoryPremises, only value of land and
building are to be considered for the purpose of loan eligibility and it is to be
ensured that property is free from onerous clauses especially with regard to
mortgage/saleof the property, stipulated at the time of purchase of property
from GovernmentAuthority or while obtaining conversionas industrialland and
there is no statutorydues exist againstsuch property.
" In case of Factory Premises, only value of land with building thereon to be
consideredas security.Value of factory shed not to be consideredas security.
Property should be located within Residential/Commerciai/lndustrial
Area in the
name of Individual(s)/Proprietor/Firm/Partner(s)
/Promoter(s)/Director(s)/
Promoter Director(s)/Whole Time Director(s)of the Firm/Company/Group/Sister
concern of the MSME Unit/HUF/SocietyKey Person(s) of Society/Trust/Key
Person(s) of Trust/Institution/KeyPerson(s)of Institution/Association/KeyPerson(s)
of Association/Close relative(s) of applicant(s) acceptable to the Bank,
provided owner(s)of the propertyoffers his/her/theirpersonalguarantee.
" Property to be consideredas security may also be in the name of Group/Sister
concern of MSME unit, which has 2applied
15 for credit facility under this scheme.
7
-6
Scope of the term 'Relative'
,P
F.N will be as per RBI Master Circular on Loans and
O
L
Advances dated O1/07/2015
RJ
UN and Bank Loan Policy Document (LPD) 2023-24,
A
RI
Part-A and as amended from time to time.
-S
E
NAM
" Subsequent leasing/letting-outof mortgaged property is allowed on obtaining
permissionfrom ZLCC.
" SEZ property and property with Power of Attorney (PoA)not to be considered
under this scheme.
" In case of Residential Property (House/Flat) value of land with building or
building only (as the case may be) to be considered.
" In case of Commercial Property/lndustrial Property/Factory Premises, value of
land with buildingonly to be considered.
" CERSAlSearch Report of the property, proposed to be considered as security,
must be checked to ascertain encumbrances on the property before appraisal
and before allowing disbursement/availmentof loan.
" Legal Search Report from Bank's empanelled Advocate and Valuation Report
from Bank's empanelled Valuer must be obtained as per extant Bank
guidelines.
" The property which is fully constructed as per approved plan, not land locked
and having approachable road and legally enforceable/marketable can only
be considered for mortgage under this scheme.
" Branch to ensure to obtain a certificatefrom Bank's empanelledvaluer to the
effect that constructionof the building (to be mortgaged) is as per approved
map/plan. If a portion of the building has not been constructed as per
approved map/plan, value of sUch portion shal not be reckoned for the
purpose ofsecurity.

Page 4 of 14

MSME Dept.
SI Scheme Features
Particulars
No
" The property on which construction is not as per approved map/plan or
map/plan is not available, in sUch cases, loan can stillbe granted against sUch
property by considering realizable value (RV) of land only for calculation of
security value.
Realizable value of property only to be considered for the purpose of security.
Residential/Commercial/Industrial Property/Factory Premises constructed on
land leased by statutory Governmernt Body/Government Development
Authorityis permitted.
While considering leased property, Branch to ensure the following
V Lease amount has been fuly paid and borrower is in possession of the
property.
Y Lease deed shallnot contain any onerous clause restrictingBank's rights as
mortgagee of leasehold rights.
Residual lease period should be more than the repaymentperiod of loan.
Lease renewal clause should be availablein the lease deed.
Leased property should have al the statutory approvals/permissionssuch as
Building Completion Certificate, Occupancy Certificate and other
approvals/permissionsas per local laws, rules and regulationsand mortgage of
sUch property should be permissible as per land lease deed and other
applicable laws, if any.
" The Borrower/Bank,as the case may be, willhave to comply with the provisions
like obtaining necessary permission/stamped undertaking from the
lessor/respectiveauthority/building 15
society and other conditions, if any, in the
lease deed, for creation of charge
O
-6
72 by way of mortgage on leased property,
wherever required. F.N
L,P
JUN
" Age of property should
-S
RI
AR not be more than 40 years (Other than Flat)/35 years
(For Flat). Relaxation
NA
ME for approval of credit facility for accepting
building/flat/apartmentwith age up to 70 years to be allowed provided that
the residual life of the building/flat/apartment exceeds the loan tenure.
The Branch Head along with empanelled Valuer/Civil Engineer/ Architect will
visit the property, take photographs and ensure that the proposed property to
be mortgaged is in good and marketable condition. Branch must obtain a
certificate from Bank's empanelled Valuer/CivilEngineer/Architect regarding
the condition, marketabilityand residual life of the property. ZLCC and above
committee can alow relaxation.
" In some of states like Maharashtra, Gujarat, Telengana, Tamil Nadu, etc
creation of equitable mortgage attracts payment of stamp duty and the
memorandum of entry/recitalor any writing evidencing creation of equitable
mortgage is required to be compulsorilyregistered under the RegistrationAct.
Branches in such states must follow this procedure while creating equitable
mortgage.

" Personal guarantee of Individual/Proprietor/Partner(s)/Promoter(s)

/Director(s)/
Promoter Director(s)/Whole Time Director(s) of the Firm/Company/Karta/Key
14 Guarantee
Person(s) of Society/Trust/Association/institution/Owner(s)
of the property/
securityshould be obtained in line with extant Bank guidelines.
Corporate guarantee of group/sisterconcern of MSME unit which has offered
security as collateral must be obtained.

aUCo
Page 5 of 14

MSMDep
S Scheme Features
Particulars
No
Rate of Interest (Rol) Matrix for "UCO Abhinandan" Scheme
Security Coverage of 75% and Above
Internal Credit Effective Rol
Rol Matrix
Rating
UCO 1 UFR 0.75% 9.30% - 0.75% 8.55%
UCO 2 UFR -0.65% 9.30% -0.65% 8.65%
UCO 3 UFR -0.55% 9.30% -0.55% 8.75%
UCO 4 UFR -0.30% 9.30% - 0.30% 9.00%
UCO 5 UFR -0.05% 9.30%-0.05% 9.25%

SecurityCoverage50% and Above but Below 75%

Internal Credit Effe ctive Rol
RolMatrix
Rating
UCO 1 UFR 0.65% 9.30% - 0.65% 8.65%
UCO 2 UFR -0.55% 9.30% - 0.55% 8.75%
UCO 3 UFR-0.40% 9.30% - 0.40% 8.90%
UCO 4 UFR0.15% 9.30% - 0.15% 9.15%
UCO 5 UFR 9.30% 9.30%

Security Coverage 40% and Above but Below 50%

Internal Credit
Rate of Interest Rol Matrix Effe ctiveRol
15
(Rol) Rating
UCO 1 UFR 0.45% 15 9.30% - 0.45% 8.85%
72
-6
UCO 2 UFRF.N-0,25%
O 9.30% - 0.25% 9.05%
,P
NL
UCO 3 JU UFR -O.10% 9.30% - 0.10% 9.20%
AR
RI
UCO 4 E-
S UFR + 0.05% 9.30% + 0.05% 9.35%
M
NA
UCO 5 UFR + 0.20% 9.30% + 0.20% 9.50%

Rate of Interest (Rol) Matrix for cases wherein Internal Credit Rating has
downgraded and Review/Renewal to be undertaken at existing level/with
enhancement and/or with additional facility
Internal Credit
Rol Matrix Efective Rol
Rating
UCO 6 UFR + 0.40% 9.30% +0.40% 9.70%
UCO 7 UFR + 0.95% 9.30% + 0.95% 10.25%
UCO 8 UFR + 1.70% 9.30% + 1.70% 11.00%
UCO 9 UFR + 2.20% 9.30% + 2.20% 11.50%
UCO 10 UFR + 2.70% 9.30% + 2.70% 12.00%
UFR = UCO Float Rate

HLCC-GM and above committee can allow relaxation in pricing within their
delegated power.
Interest Rate is subject to change from time to time as per extant Bank
guidelines.

MSIE Dept.
Page 6 of 14
SI
Particulars Scheme Features
No

SanctioningAuthoritywill be SME and Agri Hub/lntegrated Hub/ZLCC or Head

Office Level Committee as per Delegated Lending Power (DLP) defined in
Bank's Loan Policy Document in vogue.
Delegated Customers havingCommercial CIBIL MSME Rank (CMR)up to CMR-5,loan will
Authority be sanctioned by Respective Sanctioning Authoritywithin their DLP.
Customers having Commercial CIBIL MSME Rank (CMR) of CMR-6, loan will be
sanctioned by HLCC-GM and above committee.
Criteria First Year Second Year Third Year Onwards
Upfront Fee/
Processing NIL
50% of
Normal charges per

Upfront Fee/ Charges applicable

extant Bank guidelines.
50% of ZLCCmay allow concession
Processing Other Service charges
Charge/Other Charges applicable up to 50% in applicable
17
Service Charges/ charges charges on case to case
Commission for Commission basis on merits.
for NFB Limit 50% of applicable commission
NFB Limit
For detailed guidelines on service charges, Head Office, Corporate Credit
Department Circular No. CHO/FCC/08/2023-24 dated 19/12/2023 and Head
Office, International Department Circular No. CHO/IW/21/2014-15 dated
15/10/2014 and any amendments made thereof from time to time to be followed.
18 CIBIL/CMR/Fintech
As per extant Bank guidelines.
Charges
19
Legal Search 15
As per extant Bank guidelines. -6
72
Report Charges O
PF.N
L,
Valuation Report JUN
20 AR
As per extant Bank guidelines.
RI
Charges -S
ME
NA
" While taking over of borrowal accounts from other lenders, entire ligbilities in
respect of both fund based and non-fund based facilities being enjoyed by the
concerned borrowershould be taken over. Credit requirenmentsof the borrower
shallbe independentlyassessed before takeover. Account in the book of other
lenders should be regular for entire tenure of the loan and account should not
have slipped into SMA-1l/SMA-2 category in last 12 months as per account
statement as well as Credit Information obtained from CRILC/MCA/CIBIL/
ECGC/NEXENSUS.
Standard account with internal credit rating up to UCO 5 will be eligible for
takeover from other lenders. If the aCCOunt under takeover is eligible for
External Credit Rating as per extant Bank guidelines, the same should be
21 Takeover Norms
minimum "BBB" or equivalent.
" UCO 5 rated account to be vetted by Head Office, Risk Management
Department.
" Borrowers having past history of NPA with lenders not to be consideredunder
this scheme.
. In case borrowers have left our Boank during last 2 years for some reasons and
are now willingto bank again with us, in such cases NBCclearance will not be
required. In all other cases, obtining NBC clearance is mandatory as per
Bank's extant guidelines.
Loan amount in excess of outstandingbalance with other lenders may also be
allowed subject lo the condition that borrowersatisfies terms and conditionsof
this scheme.

Page 7 of 14
MSMepl.
SI
Particulars Scheme Features
No
" Account Statement from the existing lender to be obtained preferably through
Account Aggregator framework as per extant Bank guidelines.
Latest sanction communication of existing lender including subsequent
modification,if any, to be obtained andanalyzed/verified.
" Credit information to be obtained from sources like CRILC/MCA/CIBIL/ECGC/
NEXENSUS instead of credit information report from existing lender. StatuS of
account to be thoroughly scrutinized and proper due diligence to be done.
Takeoverof Non-Fund Based(NFB) Limit
Non-Fund Based limit willbe taken over from other lenders. In such case issuing
Bank willissue Counter GUarantee/Letterof Comfort equivalent to outstanding
NFB facility tillexpiry period.
Further, purpose of NFB facilities utilized with other lenders to be assessed to
ensure compliance of Bank/RBI guidelinesat the time of sanctioningof limit.
" In case of any enhancement (More than 150% of limits) in existing Working
Capitallimit already being enjoyedwith the existing lender, the same shall be
sanctioned by ZLCC and above committee within their delegated lending
power.
The following guidelines to be followed for takeover of account from other
lenders where any of the Executive Directors or MD and CEO has worked earlier
* In all loans having limits up to 7.50 Crore shall be considered by respective
sanctioning authority. These sanctions shall continue to be reported as per
Banks'sextant guidelinesand shall not be reported to the Board.
For borrowal accounts above 7.50 Crore, in exceptional cases where
takeover is Considered, 7215 the credit proposal shall be placed to
-6
Management Committee
PF
.NO of the Board for consideration and such
,
takeover proposalNL
JU shallinvariablycontain the specific reasons justifyingthe
AR
need for takeover.
-S
RI Such sanctions shall be reported to the Board in its next
ME information.
meeting NAfor
Note
" ZLCC can allow takeover of account having past takeover history on case to
Case basis on merits.
The account to be taken over should not have been rephased/
rescheduled/restructured in the books of existing lender except if restructured
under RBIResolutionFrameworkand due to COVID-19.
Securitiescharged to the previous institutionfrom whom the loan is being taken
over should also be made available as security to our Bank. The same may be
relaxed by ZLCC and above committeeas per their delegated lending power
subject to fulfilmentof scheme guidelines.
For takeover of account belonging to RestrictedSector, guidelinescontained in
Bank's Loan Policy Document in vogue to be followed.
" For any other clarifications relating to takeover norms, relevant guidelines
containedin Bank'sLoan Policy Docunmentin vogue to be referred.
" Any proposal not fit for takeover under UCO Abhinandan" Scheme shall be
considered as per extant policy guidelinesof Bank for takeover.
" All takeovercases under this scheme to be reviewed on half yearly basis for first
two years thereafter on annual basis as per Bank guidelines.
Pre and Borrower's residence, place of business/office,industry/unitand security offered
22
Post-Sanction must be visited by Branch officialand visit report to be prepared in respective
Monitoring of PSVR Formali.e. I. . I, IV and PDIR (Pre and Post DisbursementInspectionReport)
Account and the same lo be kept with loan document file.
|UCO
Page 8 of 14

MSMDep.
SI
Particulars Scheme Features
No
PSVR - I: Visit Report of Borrower's Residence
PSVR - Il: Visit Report of Borrower'sPlace of Business/Office
PSVR - IIl: Visit Report of Borrower's Industry/Unit
PSVR - IV: Visit Report of Security
PDIR: Pre and Post Disbursement Inspection Report
Post-SanctionMonitoringof Account
" In case no credit in acalendar month or insufficient credit to satisfy interest (in
case of cash credit facility)/installment (in case of Term Loan facility) demand
of a particular month, system will push SMS and email to the borrower for
informationwith a copyto Branch e-mailID for follow-up and regularizationof
account by the Branch. Mechanism for the same to be devised and
implemented by HO-DIT.
Though structured inspection is stipulated at yearly interval, inspection to be
done immediately if there is no credit in a calendar month or insufficientcredit
to satisfy interest and/or installment demand. Borrower must be contacted
immediatelyfor recovery of interest and/or installmentamount (This is important
as it is observed that accOunt tend to become iregular and slip to SMA/NPA
when there is no credit transaction in account for a month and above).
" Monthly Credit Monitoring Report (MCMR) should be sent in CMR-5 to the
Concerned Zonal Office.
Compliance Report of Sanction terms should be sent to the
Sanctioning/MonitoringAuthorityin following format
CMR-6A (Post SanctionCompliance Report).
15
CMR-6B (Certificateof Compliance
-6
72 of the Terms of Sanction).
NO .
PF
* CMR-7 (CertificateUNconfirming receipt and scrutiny of CMR-1for the month
L,
of .....). AR
J
S RI
Note M E-
NA
CMR-6A/CMR-6B/CMR-7report is required to be submitted as per applicabilityin
individual case.
Routing of Transactions
" Transactions relating to the activity for which finance under this scheme is
granted should be routed through Cash Credit account maintained with the
Branch or through Current Account in case only Term Loan facility has been
availed. In such case (when only Term Loan facility availed) transactionsto be
routed through Current Account maintained with the Branch from where credit
facility has been availed or any other Branch of our Bank with which Curent
Account is maintained. If credit summation in cash credit account is less than
70% of sales/receipts realization, Branch should ascertain the reasons thereof, If
reasons are not acceptable, cash credit limit should be reduced
proportionately.
" End use of funds to be verified immediatelyupon disbursementof loan through
inspection/verification
of purchase bil/invoice,as the case maybe.
" In case any adversityis noticed, adverse feature to be reported to Zonal Office
immediately andsuitable measUres to be initiated.
" DP Note - A1/A2
" Letter of Waiver - A47
Security
23
Document " Letter of Continuily- A3
" Term Loan Agreemenl - Al09

UCO
" Hypothecationof Goods to Secure Working Capital Loan - A9
Page 9 of 14
MSMDept.
 S
Particulars Scheme Features
No
" HypothecationDeed for Equipments- AA
" Hypothecation Deed for Book Debts - A9B
" Composite Deed of Hypothecation
" Documents required in case Liquid Collateralforms a part of security
Letter of Lien on Fixed Deposit Receipt -A38 (Revised)
V Agreement for advances against Third Party Fixed Deposit Receipt - A39
V Application-cum-Letterof Lien on Recurring Deposits - D-48
Document for granting advances against NSC/KVP - A4
V Agreement-cum-Declaration for loan against Life InsurancePolicy - A58
" Guarantee Agreement-A-21(In case of GUarantee ofFirm/Company)
" GUarantee Agreement-A-21A (In Case of Personal Guarantee
Individual(s)/Proprietor/Partner(s)
/Promoter(s)/Director(s)/PromoterDirector(s)/
Whole ime Director(s)/Karta/Key Person(s) of Society/Trust/Association/
Institution/Owner(s) of the property).
"Irrevocable Documentary Credit - FR-2
" Counter Guarantee - A-88B
" Documents/Formalities for EMTD/MOTD
Any other documents relevant to the specific case.
1) Loan under "UCO Abhinandan" Scheme can be applied by relatives of Bank's
staff subject to fulfilmentof eligibilitycriteria stipulated under this scheme.
2) Loan under "UCO Abhinandan" Scheme shall be applied by relatives of Bank's
staff directly to the Branch from where
5
he/she/they intend to avail the loan.
1
72
However, loan proposals ofNOrelatives -6 of Bank's staff shall be sanctioned by
F.
sanctioning authority notNbelow L,
P ZLCC.
U
RJ
3) The employee whose IA
- SR relative's loan proposal is under consideration should not
Loan to Relatives ME
involve himself/herself in the sanction process i.e. raising PSVRS, recommending
24 NA
of Staff Members the proposal to ZLCC, etc or should not be a member of ZLCC for the said loan
proposal.
4)Loan of relatives of ZLCC Head i.e. Zonal Manager will be sanctioned by next
level Credit ApprovalCommittee i.e. HLCC-GM and above committee.
Note
In case of loan sanctioned to relatives of Bank Staff (Scale-|V and above) under
this scheme, the same shall be reported by concerned Zonal Office to Head
Office, redit Monitoring Departmentfor onward submissionto Board of Directors.
" Stock and Book DebtStatement to be obtained at the time of fresh sanction
and thereafteron or before 21stday of end of each quarter. Penal charge to be
levied for non-submissionof stock and book debt statement as per extant Bank
guidelines.
Submission of
Stock/ " Verification of Stock and Book Debt to be undertaken by Branch official on
quarterly basis.
Book Debts
25
Statement " Drawing Power (DP) to be allowed against value of Stock and Book Debt after
and Drawing deducting applicable margin.
Power Book Debt should be for genuine trade transactionsonly.
Proper books and records are to be maintained.
" In case of Cash Credit facility above 25 Lakhs, Book Debt statement to be
certified bythe CharteredAccountant of the firm on Half Yearly basis.

s MSWE Dept.
Page 10 of 14
SI
Particulars Scheme Features
No
The assets created out of Bank finance should be comprehensively insured
26 Insurance against fire, riot, natural calamities including flood, cyclone, super cyclone,
tornado and any other perils with requisite Bank clause during the currency of
loan,

27 RoC/CERSAI RoC Charge/CERSAI Charge registration, wherever applicable, shall be

Charge mandatory.
Scheme Description Scheme Code
28 Scheme Code TermLoan-Non-[l L785N
Cash Credit CC155

For ManufacturingSector: 24003 to 24049

For Retail/WholesaleTrading Activity: 13028
29 RBC Code For Service Sector: 13028
RBC code mandatorilyto be masked by HO-DIT. Any change in RBC code to be
made only after obtainingconcurrencefrom MSME Department.
30 Scheme
Categorization Limit sanctionedunder this scheme willbe categorizedas PrioritySector ~ MSME.
Timeframe for
31 Sanction/ Hubs/Zones to sanction/dispose loan proposals as per Bank's Loan Policy
Disposal
Documnentin vOgue.
32 Scoring Model As per extant Bank guidelines.
Review/
33 Renewal of As per extant Bank guidelines.
Account
15
72
The borrowermust submit undertaking
NO
-6 clearlystating the following
F.
1) Undertakingfrom property JU
NL
,P owner/borowerto be obtaineddeclaringthat the
leased property/property
- S RI
A R
being mortgaged has been constructed as per
sanctioned plan
NA
ME and/or building by-laws.

2) The credit facility sanctionedwill be utilized for approved activitiesand not for
speculativepurposes or for any activity not permitted by law of the land.
34
Undertakingfrom 3) Borrower to undertake that he/she/theydo not owe statutory dues like GST,
Borrower Income Tax,CorporationTax, ProfessionalTax andthat he/she/theyhas/have
renewed license required for carying out business activity from statutory
authority(whereverapplicable).
4) The borrower is obligated to submit Statutory Tax Receipt/Dues Payment
Receipt on annual basis or at least once in 2 (Two)years to the Bank.
5) Borrower to undertake that the Bank shal have right to foreclose his/her/their
loan accOunt by selling the mortgaged property or by other means of
recovery as deemed fit.
" No prepayment penalty, if loan amount is paid by customers out of their own
resources. In case loan is taken over by other lender. prepaymentcharges to
be levied @2% of loan outstandingas on the date of takeover of loan.
Concession
Amount to be "In case account is taken over by other lender from our Bank, in addition to
Recovered in levying prepayment charges, all concession/relaxation/waiver in service
35 charges, Rol granted since last sanction/review/renewalof facility or sanction
Case of Takeover
of Account by accepted by the borrowerwith such clause, whichever is earlier, in the account
other Lender shall be withdrawn and coresponding amount shall be recovered from the
borrower. The claUse shall invariably be incorporated in sanction letter and
acceptance of the borrowerin this regard shall be obtained and to be kept on
record.
UCr

Page 11 of 14
MSMDept.
SI
No Particulars Scheme Features

S
No Relaxation Authority
Relaxation in Margin Requirement up to 10% in case of
additional credit facilityin the form of Fresh Term Loan HLCC-GM
Relaxation in Security Value up to 10% except cases
2 wherein loan to be sanctioned exercising Hybrid Security HLCC-GM
norm of CGTMSE
36 Relaxation Relaxationin requirementof Cash Margin up to 10% while
3 sanctioning LC/BG facility wherein CGTMSE guarantee HLCC-GM
Coverageforms a part of overall security
Relaxation for takeover of account having external rating
of "BB" HLCC-GM

Relaxation not defined under the purviewof HLCC-GM may be allowed by

HLCC-ED on case to Case basis on merits.

Exact due dates for repayment of a loan, break-up between principal and
interest and examples of SMA/NPA classification to be incorporated in sanction
advice to be generated through LPS as per RBI Circular No. RBI/2021-2022/125
DOR.STR.REC.68/21.04.048/2021-22dated 12/11/2021for loans sanctioned under
"UCOAbhinandan" Scheme.
Example to be incorporated is as under
If due date of a loan account is March 31, 2021 and full dues are not received
before the lending institution runs the day-end process for this date, the date of
Incorporation of overdue shall be March 31, 2021.
72
15 If it continues to remain overdue, then this
RBImandated -6
37 account shall get tagged Fas
.NO SMA-1 upon running day-end prOcess on April 30,
P
Information in L,
2021 i.e. upon completionof 30 days of being continuouslyoverdue. Accordingly.
the AR
JUN
Sanction Advice date of SMA-1 Sclassific
RI ationfor that account shallbe April 30, 2021.
-
A ME
Similarly,if the Naccount continuesto remain overdue, it shallget tagged as SMA-2
upon running day-end process on May 30, 2021 and if continues to remain
overdue further, it shall get classified as NPA upon running day-end process on
June 29, 2021.
Till the time loan documents containing aforementioned RBI mandated
Informoationare customized in LPS, field functionaries are advised to use enclosed
Loan Documents (A109/A9/A9A/A9B/Composite Deed of Hypothecation)
containing RBI mandated information.
In terms of Reserve Bank of India Circular No. RBI/2024-25/18
DOR.STR.REC.13/13.03.00/2024-25
dated 15/04/2024
"Branch requires to provide a Key Facts Statement (KFS) to all prospective
borrowers to help them take an informed view before executing the loan
contract,as per the standardizedformatenclosedas Annexure-A.
" The KFS shallbe written in a language understood by such borrowers. Contents
of KFS shall be explained to the borrower and an acknowledgement shall be
38
Key Fact
Statement obtained that he/she has understood the same.
" The KFS shall be provided with a unique proposalnumber and shall have a
validity period of at least three working days for loans having tenor of seven days
or more and a validity period of one working day for loans having tenor of less
than seven days.
" The KFS shall also include a computation sheet of annual percentage rate (APR)
and the amortization schedule of the loan over the loan tenor. AnnUal
percentagerate(APR) willinclude all charges which are levied by the Bank.
UCo
Page 12 of 14

A MSMEept.
SI
Particulars Scheme Features
No
llustrativeexamplesof calculationof APR and disclosureof repaymentschedule
for a hypothetical loan are enclosed as Annexure-A() and Annexure-A(2)
respectively.
Charges recovered from the borrowers by the RE (Bank) on behalf of third-party
service providers on actual basis, SUch as insurance charges, legal charges, etc
shall also form part of the APR and shall be disclosed separately. In all cases
wherever the RE (Bank) is involved in recovering such charges, the receipts and
related documents shall be provided to the borower for each payment,within
a reasonable time.

Any fees, charges, etc which are not mentioned in the KFS,cannot be charged
by the RE (Bank) to the borrower at any stage during the term of the loan,
without explicitconsent of the borrower.
" The Key Facts Statement (KFS) shallalso be included as asummary box to be
exhibitedas part of the loan agreement.
" Branch to ensure complianceof KYC norms.
" End use of funds to be verified through PDIR (Pre and Post Disbursement
Inspection Report).
" For takeover of Term Loan, only residual period left to be considered for funding.
Fresh credit requirements of the borrower to be assessed independently before
takeover.
" At the time ofCredit Risk Evaluation Process (CREP) key financial ratios i.e. DSCR/
Interest Coverage Ratio,Debt Equity Ratio, TOL/TNW, Current Ratio and Security
Coverage Ratio to be analysed for fresh/enhanced exposure of Rs.3 Crore and
above. EBITDA margin to be analysed
72
15 from NEXENSUS financial report and to be
-6
included in the analysis of financial
F.N
O ratios.
P
L,
" Credit information to Abe
RJ obtained from sources like CRILCIMCA/CIBIL/ECGC/
U N
I
NEXENSUS insteadME -ofSR credit information report from existing lender. Status of
NA
account to be thoroughly scrutinizedand proper due diligence to be done.
" RAROCthresholdas per extant Bank guidelinesto be followed.
"Purpose of loan, financial position of prospective borrower, business activity,
creditrequirementbesides estimated/projectedfinancials (as applicable) need
39 Others to be taken into consideration while assessing the limit.
" At the time of takeover of account from other lenders, it is to be ensured that
current account(s) maintainedwith other Bank(s) is closed to the extent possible.
Similar exercise to be done at the fime of review/renewal of the credit facility.
Undertaking from the borrower to be obtained in respect of that on following
eventualityBank shallhave a right to foreclose the loan account(s) and recover
the outstandingamount by selling the mortgaged propertyor by other means of
recovery asdeemed fit
i) Breach of sanctioned terms and conditions.
ii) Substantial erosion in value of property vis-à-vis loan outstanding and
non-liquidationof the account.
" Equitable Mortgage of immovable property should be based on original title
deed only.
" Equitable Mortgage must be created by owner of the property and not by
Power of Attorney (POA) Holder and Charges for Equitable Mortgage/Extension
of Equitable Mortgage to be borne by the borrower.
Equitable Mortgage/Extensionof equitable mortgage to be registered with
Sub-Registrar's Office in states, wherever applicable, as per extant Bank
UC
Page 13 of 14

a MSE Dept.
H.O
 SI
Particulars Scheme Features
No
guidelines.Charges for the same to be borne by the borrower.
" Stamped undertaking from the tenant should be obtained to the effect that
he/she/they willvacate the property in the event of Bank's invoking SARFAESI
action. In case of any change in lease/rentalstatus of the property it should be
informed to the Bank in time and aforesaid formalities are to be adhered (In
case of let out property).
" Branch shall ensure to display Bank's name as financier at aconspicuoUS place
in the business premises of the borrower.

Note: Notwithstanding what is stated above, the other mitigating factors/precautions/guidelinesas

SUggested in both Bank's MSME Policy 2023-24 and Loan Policy Document 2023-24 and any changes made
thereof from timne to time shall continue to be effective and applicable under this scheme.

UCO

MSMEDept.

15
72
-6
O
PF.N
L,
JUN
AR
RI
E -S
NAM

Page 14 of 14
 Annexure-A

Key Facts Statement (KFS)

Part-1 (Interest Rate and Fees/Charges)

Loan proposal/ Account No Type of Loan

2 Sanctioned Loan amount (in Rupees)
Disbursal schedule
() Disbursementin stages or 100% upfront
() if it is stage wise, mention the clause of
loan agreement having relevant details
4 Loan term (year/months/days)
5 Instalment details
Number of
Type of instalments (Equated Periodic EPI(3)
Commencementof repayment,post
Sanction
Instalments) EPIs

Interest rate (%) and type (fixed or flo ating or hybrid)

7 Additional Information in case of Floating rate of interest
Reset Impact of change in the reference
Reference Benchmark Periodicity benchmark
Rate (%) (B) Soreca (%, (S) inal Rate (%) (MOntns) (for 25 ops change in 'R', changein)
Benchmark R= (B) (5)
EPI(3) No of EPIs

Fee/Charges
Payable to the RE (A) Payable to a third party through RE (B)
|Amount (in 2)
Amount (in ) or
One-time/ 72
15 One-time/ Percentage(%)as
Percentage
-6
Recurring .NO
(%) Fas Recurring applicables
,P
applicabls
NL
JU
Processingfees AR
SRI
M E-
Insurance charges NA
Valuation fees
Any other (please
{iv
Specity)
AnnualPercentage Rate (APR) (%)6
10 Details of ContingentCharges (in or %, as applicable)
Penalcharges, if cny, ir cose of oelayed paymeni
Other penal charges, if any

Foreclosurecharges, if appiicable
(iv Charges for switchingof loans from floating to fixed rate and vice versa
(v) Any other charges (please specity)

2Fixed reset, other than on account of changes in credit profile

3Plegse refer RBI cicular 'Reset of Floating Interest Rate on qualed Monthly Instalments(EMI) based
Personal Loans' dated AUgust 18, 2023.
*REs may disclose the amount net of any taxes sUch as GST
SMention frequency, where recurring
6 Plcase refer to the illustrationin Annexure-A(1)

P
 Part -2 (Other QualitativeInformation)
Clause of Loan agreement relating to
engagement of recovery agents

2 Clause of Loan agreement with details

grievance redressal mechanism
Phone number and email id of the nodal
3
grievance redressal officer?
Whether the loan is, or in future maybe,
4 subject to transfer to other Bank
securitisation(Yes/ No)
In case of lending under collaborative lernding
5 arrangements (e.g. co lending/
outsourcing),following additionaldetails may be furnished
Name of the originating RE, Name of the partner RE along with its
along with its funding proportion proportion of funding Blended rate of interest

In case of digital loans, following specific disclosuresmay be furnished:

Cooling off/look-up period, in terms of RE's
board approved policy, during which
borower shall not be charged any
penaltY on prepayment of loan
(i) Details of LSP acting as recovery agent
and authorized to approach the borrOwer
5
21
- 67
7 RE moay furnish generic email id, provided a response is made.NO within l working day
PF
L,
UN
ARJ
RI
-S
ME
NA
 Annexure-A(1)
llustrationfor computationof APRfor MSME Loans
SI
No Parameter Details
1 Sanctioned Loan amount (in Rupees) (SI No. 2 of the
KFS template - Part 1) 20,000
2 Loan Term (in years/months/days) (SI No. 4 of the KFS
template - Part 1)
No. of instalmentsfor payment of principal, in case of
non- equated periodic loans
Type of EPI(Equated Periodic Instalment) Monthly
Amount of each EPI(in Rupees) and 970
b Nos. of EPIs (e.g. N o. of EMIs in case of monthly 24
instalments)
(SI. No. 5of the KFS template - Part 1)
No. of instalments for payment of capitalised interest, if
any
Commencementof repayments,post sanction (SI. 30 days
No. 5of the KFS template - Part 1)
3 Interest rate type (fixedor floating or hybrid) (SI. No. 6
of the KFS template - Part 1) Fixed
4 Rate of Interest(SI. No. 6 of the KFS template - Part) 15%
Total Interest Amount to be charged during the entire
5 tenor of the loan as per the rate prevaling on 3,274
sanction date (in Rupees) 21
5
7
Fee/Chargespayable (in Rupees) F.N
O
-6 400
A Payable to the RE (SI. No.8A ofJUNthe
L,
P
KFS template-Part 240
R
RIA
-S
B Payable to third-partyNArouted
ME through RE (SI. No.8B of 160
the KFStemplate - Part 1)
7 Net disbursed amount(1-6) (in Rupees) 19,600
8 Totalamount to be paid by the borrower (sum of 1 23,2749
and 5) (in Rupees)
Annual Percentage rate- Effective annualized interest
rate (in percentage)10 (SI. No.9 of the KFS template 17.07%
Part 1)
Detailed
10 Scheduleof disbursementas per terms and conditions Schedule
be
to
provided
|11 Due date ofpayment ofinstalment and interest DDMMYYYY

6 Where such charges cannot be delerminedprior to sanction, REs may indicate an upper ceiling
9 The difference in repayment mount calculated from the tolal of instalments given under the
detailed repayment schedule i.e. 23,280 (=970*24) vis-à-vis the amount of 23,274 *20,000 (loan
amount) + 3,274 (Interestcharges)] mentionedunder (11) is due to rounding off the instalmentamount
of E969.73 to 2970under the detailed repayment schedule
10 Cormputed on net disbursed amount using IRR approgch and reducing balance method
 Annexure-A(2)

IllustrativeRepaymentSchedule under Equated Periodic Instalmentfor the

hypotheticalloan illustrated in Annexure-A(1)

Instalment Outstanding Principal(in Interest (in Instalment(in

Principal(in
No
Rupees) Rupees) Rupees) Rupees)
20,000 720 250 970
2 19.280 729 241 970
3 18,552 738 232 970
4 17,814 747 223 970
5 17,067 756 213 970
16,310 766 204 970
7 15,544 775 194 970
14,769 785 185 970
9 13,984 795 175 970
13.189 805 165 970
12,384 815 155 970
12 11,569 825 145 970
13 10,744 835 215 134 970
7
-6
9,909 846
P F.N
O 124 970
15 9,063 JU
,
N L856 113 970
AR
8,206 -S
R I
867 103 970
ME
7 7,339 NA 878 92 970
6,461 889 81 970
9 5,572 900 70 970
20 4,672 911 58 970
21 3,761 923 47 970
22 2,838 934 35 970
23 1,904 946 24 970
24 958 958 12 970