Non Fund Based Facilities offered by Vijaya Bank

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Non Fund Based Facilities offered by Vijaya Bank
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Issuance of Bank Guarantee for purchase of
machinery or goods on credit

• Eligibility Existing customers of bank who have
  satisfactory dealings in the past. Also, the
  Deferred payment Guarantee contains an
  undertaking on the part of the Bank to guarantee
  the due payment in case of deferred instalments
  by the customers.
• Period of Guarantee Up to 5 years and in
  exceptional cases it can extend up to 10 years.
• Rate of commission
• For metropolitan, urban semi-urban branches it
  is Rs.1000.75 per quarter, or part thereof,
  with a min of 3.
• For rural areas it is Rs.800.75 per quarter, or
  part thereof, with a minimum of 3.
• Security
• It can be in the form of banks own security
  deposits or other acceptable forms like GP Notes,
  Insurance Policies having adequate surrender
  value and easily marketable shares.
• Immovable property is considered as mortgage
  security only in exceptional cases, where
  customer is well known and at least 25 of
  guarantee amount is covered by cash margin.
• An indemnity Policy of Insurance company is also
  insisted

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Issuance of Bank Guarantee in Lieu of Security
Deposit / EMD / Performance Guarantees

• Guarantees in favor of Government departments,
  such as Railways, PWD in lieu of tender money or
  performance of contracts to supply goods, etc.
• Sales tax/Income tax Authorities in respect of
  payment of taxes.
• Several commercial transactions which involve
  execution of bank guarantees.
• Commission Rs.100/-plus 0.75 or 0.5 per
  quarter or part thereof towards financial or
  performance guarantee respectively.
• Security
• It can be in the form of banks own security
  deposits or other acceptable forms like GP Notes,
  Insurance Policies having adequate surrender
  value and easily marketable shares.
• Mortgage of immovable property is considered in
  exceptional cases, where customer is well known
  and at least 25 of guarantee amount is covered
  by cash margin.

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Financial guarantee against collateral securities
/cash margin

• Guarantees on behalf of constituents who are
  selling tickets ( selling agents/lottery
  tickets/airline tickets) in favor of Govt
  departments, Airlines, and other companies in
  lieu of cash deposit or earnest money.
• Guarantees on behalf of constituents who are
  selling tickets ( selling agents/lottery
  tickets/airline tickets) in favor of Govt
  departments, Airlines, and other companies in
  lieu of cash deposit or earnest money.
• Deferred Payment Guarantees.
• All mobilization guarantees issued on behalf of
  contractors.
• Guarantees given to courts for release of
  deposits/in lieu of payment to court.
• Security
• It can be in the form of banks own security
  deposits or other acceptable forms like GP Notes,
  Insurance Policies having adequate surrender
  value and easily marketable shares.
• Mortgage of immovable property is considered in
  exceptional cases, where customer is well known
  and at least 25 of guarantee amount is covered
  by cash margin.
• Commission Rs.100/-plus 0.75 per quarter or
  part thereof.

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Issuance/establishing BG/LC on behalf of lottery
agents/liquor contractors/liquor shops with 100
cash margin
Letter of credit with a minimum cash margin of
25 (inland)

• Security 100 cash margin.
• Forward Sales ,Forward Purchase contracts
• As per the guidelines on the manual of foreign
  exchange and RBI guidelines.

• Customers who enjoy credit facility with the bank
  can enjoy the facility of Letter of credit.
• Letters of credit can be opened under following
  circumstances
• Clean
• Documentary
• Revocable
• Irrevocable
• With recourse
• Without recourse
• Revolving

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The letter of credit
Guarantees/Co-acceptance of usance bills with
minimum 25 cash margin

• Inland Letters of credits are normally opened in
  the range of 3 - 6 months and there need to be
  justifiable grounds if in case they are opened
  for longer periods.
• The documentary inland letter of credit may call
  for bills of exchange payable at sight or on D/A
  terms and if latter is the case, then the payment
  to the beneficiary should be made only when it
  reaches maturity.

• Eligibility Existing customers who enjoy credit
  limits with the bank.
• It should be ensured that the bills accepted by
  both parties are actually reflected in the stock
  account of the borrowers.

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Discounting of Bills co-accepted by other Banks
Partly secured /unsecured /clean
Guarantee/co-acceptances with minimum of 25 cash
margin

• Eligibility Existing customers who enjoy credit
  limits with the bank.
• Before discounting bills co-accepted by other
  Banks, the branch should get a written
  confirmation from the concerned officer of the
  accepting bank and the branch should keep a
  record of the same.

• Immovable property can be accepted as mortgage
  security in special circumstances provided 25 of
  guarantee is covered by cash margin.
• In the case of partly secured guarantees, the
  minimum cash margin to be obtained can vary based
  on the indications in the discretionary power
  chart.

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Issue of solvency /capability certificates

• Solvency certificates are issued based on the
  guidelines and format prescribed in the manual of
  instructions.
• Credit information on customers can be furnished
  to banks or public financial institutions only
  with customers consent.
• Service charges levied for issue of solvency
  certificates
• Less than Rs.1 lakh Rs.562
• Rs.1 lakh and above Rs.113 Per lakh or part
  thereof (Min - Rs.562 and Max - Rs.16,854)

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VIJAYA BANK

• Vijaya Bank is a PAN India Institution, serving
  diverse sectors of the society
• The Bank offers a bouquet of innovative and
  attractive products and services to its
  customers. It has also incorporated a host of
  latest Digital Banking products, to provide the
  best services to its customers.
• Digital Banking services are
• VPAYQWIK
• Mobile Banking
• Net Banking
• Vijaya UPI
• Twitter banking and many more
• For details, visit https//www.vijayabank.com

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THANK-YOU