a) SIDBI has a comprehensive loan application form for the borrowers including those seeking assistance up to Rs.2 lakh. In respect of assistance/ loans of upto Rs.5 lakh per borrower, no upfront fee/ processing fee is charged. Besides, the facility of prepayment of such loans would be available and no premium would be charged by SIDBI for such prepayment from such borrowers. In respect of assistance/ loans above Rs.5 lakh per borrower, upfront fee/ processing fee upto 2% of assistance sought may be charged. The fee may be refunded in full in case the applicant is not sanctioned any financial assistance. The facility of prepayment of loans would be available and premium, calculated as per the extant instructions, would be charged by SIDBI for such prepayment from borrowers sanctioned assistance above Rs.5 lakh.

b) SIDBI would provide acknowledgements for receipt of all loan applications. The Bank has put in place risk assessment tools for credit rating which have enabled it to directly reach out to smaller customers in the SME segment by cutting down the appraisal and processing time. Time frame for disposal of loan applications, from the date of satisfactory receipt of complete information/ data/ clarifications/ reports, etc., would also be indicated in the acknowledgement of such applications.

c) The Bank would dispose of commercial loan applications upto Rs.2 lakh within 15 working days after satisfactory receipt of complete information/ data/ clarifications/ reports, etc. The Bank would endeavour to dispose of commercial loan applications above Rs.2 lakh , normally within a period of 15 working days for proposals falling within the purview of RO/BOs and further period of 15 working days for proposals to be referred to ZO/HO, after satisfactory receipt of complete information/ data/ clarifications/ reports, etc. from the applicant

d) SIDBI would verify the loan applications within a reasonable period of time. If additional details/ documents are required, borrowers would be intimated at the earliest.

e) In case of all applications which are denied financial assistance, on account of not being found supportworthy as per the policy framework and/or risk perception of the Bank, either with or without detailed appraisal, SIDBI would convey in writing, the main reason/ reasons which in the opinion of the Bank after due consideration, have led to rejection of the loan applications. Such communication to the applicant would normally be despatched within 10 working days of the rejection.

a) With the operationalisation of the Risk Assessment Model, which is an exercise in detailed risk analysis of the various facets of the projects, SIDBI ensures that there is proper and scientific assessment of credit application submitted by borrowers. The Bank would carry out detailed due diligence and appraisal exercise on credit worthiness of the borrower/ project and would not use margin and security stipulation as a substitute.

b) SIDBI would convey to the borrower the loan/ credit limit along with the terms and conditions thereof and would keep the borrower's acceptance of these terms and conditions given with his full knowledge on record.

c) Terms and conditions and other caveats governing credit facilities given by SIDBI arrived at after negotiation between SIDBI and borrower would be reduced to writing and duly certified by SIDBI's authorised official. A copy of loan agreement along with a copy each of all enclosures quoted in the loan agreement would be furnished to the borrower.