Please state the value of the collateral required to be pledged considering the property is already mortgaged
Key regulations, policies and Information for the purpose of this case study Debt Burden Ratio (DBR) - 50% (in case of Personal Loans only) 60% (in case of housing loans) (DBR (Total Instalments payable +5% of Credit Card Limit)/Monthly Income) . Debt Service Coverage Ratio (DSCR) 1.25x (DSCR Net Annual income / Total Obligations under credit. facilities) . Maximum Age for lending 70 Years (The loan must be repaid before the customer attains the age of 70 years) . Loan to Value: Maximum 50% of the value . Security Asset Coverage of minimum 200% (Value of the Security / Credit Facility Amount) . The end use of the funds should be certifiable . Maximum Tenor Loan Type Max Term Commercial Real Estate 12 Years 2 Years Moratorium Till the age of 60 (sub to max 25 Years) Housing Loan Overdraft Renewable every 12 months Yacht Finance 8 Years Car Loan 5 Years Personal Loan 7 Years Return on Equity to be minimum 16.326% p.a. (ROE = Morgin over FTP (in %)/ Capital Contribution (in %)) Please assume capital contribution at 15.50% . Pricing: Interest Rate FTP Margin or Spread (To be colculated basis the ROE) . Processing Fees can be 1.00% of the loan amount FTP for various durations is given as under Duration FTP (%) Duration FTP (%) 1 Year 2.25 11 Year 4.27 2 Year 2.39 12 Year 4.33 3 Year 2.55 13 Year 4,47 4 Year 3.01 14 Year 4.54 5 Year 3.37 15 Year 4.67 6 Year 3.48 16 Year 4.71 7 Year 3.64 17 Year 4.79 8 Year 3.77 18 Year 4.89 9 Year 3.99 19 Year 5.01 10 Year 4.12 20 Year 5.15 Products FTP (%) Housing Loan 3.23 Car Loan 3.57 Overdraft 4.01 Life Insurance premium -0.2 % p.a. Customer's requirement: A loan facility of RO 2.80 Mio to be utilised for following: D RO 850,000 to take over the residual loan from Z Bank (Commercial Real Estate Financing) RO 250,000 Fresh Overdraft O RO 500,000 Housing Loan RO 250,000 Car Loan O RO 200,000 Credit Card 0 RO 500,000 Personal Loan (Cash) 0 RO 250,000 Yacht Finance .. Collateral / Security: Mortgage over property, Pledge over securities, Income assignments, 0 Property Value: RO 1.60 Mio O Investment Value: RO 5.2 Mic Customer's current age is 42 Years Customer's Incomes are as under: 0 Rental Income RO 75,000 p.m. (Municipality Tax 3%, Maintenance Cost 10%, Vacancy Haircut 20%} 0 Monthly Income Distribution of Family Trust of RO 25,000 O Investment Income for past 3 years CY19 CYZO CY21 Year Annual Income RO 500,000 RO 750,000 RO 250,000 Customer's Net-worth (RO Mio) Particulars CY21 Real Estate Land Parcels Investments Holdings in Companies- Other Assets Total Assets Less: Liabilities Net-worth . . CY20 15 7 6 11 2 41 (2) 41 10 2 4.3 8.7 1.8 26.8 (1) 25.8 Key regulations, policies and Information for the purpose of this case study Debt Burden Ratio (DBR) - 50% (in case of Personal Loans only) 60% (in case of housing loans) (DBR (Total Instalments payable +5% of Credit Card Limit)/Monthly Income) . Debt Service Coverage Ratio (DSCR) 1.25x (DSCR Net Annual income / Total Obligations under credit. facilities) . Maximum Age for lending 70 Years (The loan must be repaid before the customer attains the age of 70 years) . Loan to Value: Maximum 50% of the value . Security Asset Coverage of minimum 200% (Value of the Security / Credit Facility Amount) . The end use of the funds should be certifiable . Maximum Tenor Loan Type Max Term Commercial Real Estate 12 Years 2 Years Moratorium Till the age of 60 (sub to max 25 Years) Housing Loan Overdraft Renewable every 12 months Yacht Finance 8 Years Car Loan 5 Years Personal Loan 7 Years Return on Equity to be minimum 16.326% p.a. (ROE = Morgin over FTP (in %)/ Capital Contribution (in %)) Please assume capital contribution at 15.50% . Pricing: Interest Rate FTP Margin or Spread (To be colculated basis the ROE) . Processing Fees can be 1.00% of the loan amount FTP for various durations is given as under Duration FTP (%) Duration FTP (%) 1 Year 2.25 11 Year 4.27 2 Year 2.39 12 Year 4.33 3 Year 2.55 13 Year 4,47 4 Year 3.01 14 Year 4.54 5 Year 3.37 15 Year 4.67 6 Year 3.48 16 Year 4.71 7 Year 3.64 17 Year 4.79 8 Year 3.77 18 Year 4.89 9 Year 3.99 19 Year 5.01 10 Year 4.12 20 Year 5.15 Products FTP (%) Housing Loan 3.23 Car Loan 3.57 Overdraft 4.01 Life Insurance premium -0.2 % p.a. Customer's requirement: A loan facility of RO 2.80 Mio to be utilised for following: D RO 850,000 to take over the residual loan from Z Bank (Commercial Real Estate Financing) RO 250,000 Fresh Overdraft O RO 500,000 Housing Loan RO 250,000 Car Loan O RO 200,000 Credit Card 0 RO 500,000 Personal Loan (Cash) 0 RO 250,000 Yacht Finance .. Collateral / Security: Mortgage over property, Pledge over securities, Income assignments, 0 Property Value: RO 1.60 Mio O Investment Value: RO 5.2 Mic Customer's current age is 42 Years Customer's Incomes are as under: 0 Rental Income RO 75,000 p.m. (Municipality Tax 3%, Maintenance Cost 10%, Vacancy Haircut 20%} 0 Monthly Income Distribution of Family Trust of RO 25,000 O Investment Income for past 3 years CY19 CYZO CY21 Year Annual Income RO 500,000 RO 750,000 RO 250,000 Customer's Net-worth (RO Mio) Particulars CY21 Real Estate Land Parcels Investments Holdings in Companies- Other Assets Total Assets Less: Liabilities Net-worth . . CY20 15 7 6 11 2 41 (2) 41 10 2 4.3 8.7 1.8 26.8 (1) 25.8
