Non Fund Based Facilities offered by Vijaya Bank

1. Non Fund Based Facilities offered by Vijaya Bank

2. 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.100+0.75% per quarter, or part thereof, with a min of 3%. For rural areas it is Rs.80+0.75% per quarter, or part thereof, with a minimum of 3%. Security: It can be in the form of bank’s 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

3. 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 bank’s 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.

4. 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 bank’s 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.

5. 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

6. 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.

7. 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.

8. 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)

9. 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 bankingand many more… For details, visit: https://www.vijayabank.com

10. THANK-YOU