1.1 Loans can be sanctioned to members only
1.2 The period of the loan will be restricted so that the last instalment for repayment shall be
before the day on which the applicant attains the age of 70 years.
1.3 All the co-owners of the property, which is offered as security for the loan, shall
necessarily join the application as co-obligants. Family members of the applicants are
also allowed to join the application as co obligants/sureties.
1.4 Non-agricultural properties shall only be considered as security and an affidavit properly
notarised stating that the property offered as security is not an agricultural property.
In the case of loans for agriculture and allied activities, agricultural property can also be
accepted as security.
1.5 Financial position/income of the co-obligants can also be considered for the purpose of
calculation of eligible amount.
1.6 Salaried persons shall produce their salary certificate in the prescribed format of the Bank
along with Section 37 agreement.
1.7 Agricultural income will be reckoned by the Bank as per its own specifications.
1.8 In case, the dependents employed abroad are supporting the family, the applicants can
submit their own pass book/statement of accounts showing the remittances of their
dependents employed abroad as proof of income for the current year and previous year.
1.9 Professional/self-employed/business persons shall produce their audited accounts audited
by Chartered Accountants and balance sheets/income tax assessment order or returns as
proof of income.
Repayment will be in the form of diminishing monthly instalments or equated monthly instalments comprising principal and interest as fixed by the Bank. Simple interest @ 2% per annum will be charged additionally, in case the borrower defaults in repaying the stipulated instalments.
Interest charged will be in conformity with the instructions issued in this regard by the RBI from time to time and is subject to variation regarding rates according to the amount sanctioned as may be decided by the BoD of the Bank.
4.1 All the individuals whose income is being considered for arriving at the eligible loan
amount shall necessarily join as applicants/co-obligants to the loan irrespective of
whether they are co-owners of the property or not except the dependents of applicants
employed abroad.
4.2 For salaried individuals income to be taken as per salary certificate/latest salary slip/latest
ITR for arriving at eligible loan amount/repayment capacity. While calculating eligible
loan amount, regular income (salary/pension) only be considered. Bonus, incentives etc.,
shall not be reckoned for arriving at the eligible loan amount.
4.3 For non-salaried class, average income as per ITR of immediately preceding three years
may be taken into consideration.
4.4 Any other regular source of income such as rent, agricultural income etc. can also be
reckoned. Supporting documents like P&L, balance sheet, computation of income etc.
also should be obtained.
4.5 Income of any of the family members’ supporting the applicant can also be considered.
In such cases proof as detailed in clause 1.8 of these sub rules to be submitted.
Valuation of the security property shall be done by the empanelled chartered valuator of the Bank for loan amount exceeding ₹ 3 lakhs, in addition to the valuation of the concerned Branch Manager. For loans below ₹ 3 lakhs valuation shall be made by the by the Branch Manager. The report of the valuation in the specific format shall be enclosed in the loan file. The maximum loan amount shall not be greater than 50% of the distress value of the security offered. For housing loans (for the construction of new houses), the maximum loan value shall be 50% of the distress value of the property in which the house is proposed to be constructed plus 75% of the estimated cost of house proposed to be constructed. In case of housing loan, the residential unit and the property offered as security should be valued after the completion of the construction of the house and the valuation certificate should be collected and shall be kept along with the loan file.
The Branch Manager shall forward the original title deeds along with the documents listed in clause 11 of this sub rule to the empanelled Legal advisor for legal opinion. Affidavit and all other documents related to proposed mortgage/property should also be obtained from the applicants. If any conditions are stipulated in the legal report, it should be complied with before processing the loan file. The completed file only be forwarded to the Head Office for sanctioning of the loans.
Processing charges, legal charges, valuation charges, Gehan execution fees etc., will be charged as per the decision of the BoD from time to time.
8.1 The property to be mortgaged must be specific and easily identifiable.
8.2 Minimum land holdings of 10 cents (4.05 ares) is needed to avail the loan. Exemption
can be sought from the BoD for landed property of extent less than 10 cents having
sufficient value for the proposed loan. Such loan applications shall be collected only after
exemption is granted.
8.3 The property must have a legally accessible road with sufficient transportation facility.
The security properties having vehicle access shall only be considered. The Branch
Manager shall specify the nature of road access in his/her report.
8.4 The property should be suitable for the creation of a valid and enforceable mortgage/
Gehan
9.1 Branches should call for the broken period EC from the date of coverage under earlier
EC till the date of creation of mortgage by Gehan.
9.2 Mortgaged property should be inspected by the Branch Manager periodically (at least
once in six months) and shall confirm that the property is not alienated and a certificate
to that effect is to be kept in the loan file.
10.1 Preliminary verification
Before considering the proposal involving offer of property by way of mortgage, the
Branch Manager must satisfy himself/herself or by examination of the deeds that the title
of the property is prima facie in order and must ascertain that the property is
unencumbered and the mortgager is having unquestionable title over the property. The
Branch Manager shall also confirm and certify that the property offered as security is
specific and is having identifiable boundaries.
10.2 Title Deeds and other documents
a) Proposed mortgagor is required to submit title deed of the property offered and also
its prior deeds in original or copy for verifying whether the current holder of the
property has got clear, absolute and marketable title over the property.
b) If necessary, explanation in the form of an affidavit on a requisite stamp paper and
duly authenticated by Magistrate/Notary Public may be obtained.
c) Other documents as envisaged in clause 11 of this sub rule shall also be submitted by
the mortgagor and the Branch Manager shall scrutinize them and shall be satisfied
with the submitted documents.
The Manager should collect the following documents and all other relevant documents
required for assessing the eligibility and quantum of finance from the borrower.
>> Duly filled application form
>> Self-attested copies of Aadhaar card, PAN card, ration card and copy of the ID card
issued by the Bank
>> Income proof with supporting documents
>> Original title deed of the property/properties offered as security
>> Original prior title deeds or their copies as the case may be for the last 30 years
>> Current land tax receipt of the property/properties offered as security
>> Copy of Thandaper register
>> Location sketch issued by the Village Officer
>> Possession and non-attachment certificate
>> Encumbrance certificate for past 30 years
>> CIBIL score certificate of the applicant
>> Any other documents required for the concerned loan
>> Copy of the tax receipts of the property/properties in the name of the borrower, sureties
and co-obligants other than the mortgaged property/properties, if any.
Valuation of the property shall be made in accordance with the policy of the Bank.
On receipt of the valuation report and legal report, Branch Manager has to decide on the
eligible loan amount with reference to valuation of property, source of income, repayment
capacity and other relevant aspects of the applicant and shall be certified in the prescribed
report. The report of recommendation of the Branch Manager together with the loan
application and other connected documents detailed above shall be submitted to the
Loans Manager at the Head Office. A committee comprising of the General
Manager/CEO/MD, Loans Manager and Accounts Manager will review the loan
application and the report of the said three member committee with recommendation of
the General Manager/CEO/MD will be submitted to the BoD for the sanction of the
eligible loan amount. After approval/sanction by the BoD, payment order shall be issued
to the applicant after executing Gehan and signing by all parties of the loan in the Gahan,
agreements and all other necessary documents in the head office connected with the loan.
After receiving the payment order, Branch Manager should disburse the loan amount to
the borrowers by crediting it in his/her savings account/current account as the case may
be, after obtaining the loan agreements. The Branch Manager shall also confirm that the
EC for the period up to the date of issue of loan is obtained and verified before the
disbursal of the loan amount. All the loan applications shall be processed through CBS.
Housing Loan can be sanctioned for the construction of new houses, purchase of existing houses, extension, repair, renovation or altering of existing houses. Loans can also be sanctioned for the takeover of existing home loans issued by other Banks. Loans for outright purchase and for extension, repair, renovation or altering, existing residential units not older than 10 years only can be considered. Residual age of the residential unit shall be 10 years more than repayment tenure. Certificate of age of the residential house to be obtained from approved valuator before sanctioning the loan.
The maximum period of loan shall be 20 years for the construction of new house and for outright purchase. In the case of repair, renovation or altering of existing houses, the maximum period is limited to 10 years. The above period is subject to the condition specified in clause 1.2 of this sub rule.
Maximum loan amount for the construction of new houses shall be ₹ 50 lakhs. In case of repair, renovation and extension the maximum amount is limited to ₹ 15 lakhs. The loan amount in all individual cases will be fixed on the basis of the repayment capacity and the source of income of the borrower. Generally, in the case of borrowers of age less than 45 years, the loan amount shall be limited to 50 times the net monthly income subject to a maximum of ₹ 50 lakhs. For borrowers above 45 years, loan is limited to 36 times the monthly income subject to the maximum of ₹ 50 lakhs.
In addition to the documents listed in clause 11 of this sub rules, plan and estimate of the proposed new residential building/proposed renovation of the existing building duly prepared by an Engineer, copy of Panchayath/Municipal sanction order also to be submitted along with the application.
The loan amount shall not exceed 75% of the estimated cost, in case of construction of new house. In the case of outright purchase, the maximum loan amount shall be limited to 70% of the estimated cost of house, landed property, additional amenities and stamp duty and registration fees. For extension, repair, renovation or altering of existing houses the loan amount shall not exceed 75% of the estimated cost. In all the above cases, the valuation shall be done by the empanelled chartered valuator of the Bank. The estimates prepared by approved Engineers shall be certified/ countersigned by the chartered valuator.
For construction of a single storied new house, the loan amount will be disbursed as five equal instalments. The first instalment will be disbursed on completion of foundation and basement, the second on completion up to the belt level including the erecting of doors and windows, third on concreting the roof, fourth on completion of plastering, fixing of shutters of doors and windows, concreting the floor, and the last installment on completion of the house in all respects, including tiling, plumbing, electrification and whitewashing, as per the plan and estimate. In the case of two storied new houses, the total sanctioned amount may be divided as two portions according to the area of the ground floor and the first floor. For the construction of the first floor, the loan amount will be disbursed as four equal instalments. The first instalment will be disbursed on completion up to the belt level including the erection of doors and windows, second on concreting the roof, third on completion of plastering, fixing of shutters of doors and windows and the fourth installment on completion of the first floor of the house in all respects, including tiling, plumbing, electrification and whitewashing, as per the plan and estimate. Payment order for very instalment will be released from the Head Office on production of stage certificate issued by the concerned Branch Manager. The installment amount shall be credited to the borrower’s savings bank account/current account maintained with the Bank. A completion certificate of the house along with the copy of the house tax receipt should be submitted to the Bank. In the case of outright purchase of land and house, 100% of the cost as detailed in clause A.5 of this sub rule shall be transferred to the account of the seller kept in our Bank after collecting margin 30% from the loanee. The Branch Manager shall confirm that the total amount as shown in the agreement is declared in the purchase deed and the sufficient stamp paper and registration fees paid. The amount shall be released to the seller only after the execution of all agreements and Gehan in favour of the Bank. For extension, repair, renovation or altering of existing houses, installments shall be released from head office according to the progress of work with stage inspection and stage certificate of the Branch Manager.
The moratorium period is 12 months for construction of new houses and for extension, repair, renovation or altering of existing houses. During the moratorium period, borrower shall remit the interest. In case, there is any interest remaining uncovered in the loan account, the same should be recovered in full before release of subsequent instalment. If the house construction is not completed within 12 months, further disbursements will not be allowed and installment will be rescheduled for the amount to be disbursed.
The property in which house is being constructed, renovated or altered or proposed to be purchased shall be mortgaged in the name of the Bank by depositing the original title deeds, prior title deeds and submitting the other documents detailed in clause 11 and registering mortgage deed or executing Gehan. For outright purchase registered agreement executed for sale shall also be produced. Instead of the original title deed, copy of the title deeds of present owner is enough initially. All the relevant title deeds shall be collected after the execution of the sale deed.
The dwelling unit constructed/purchased should be insured by the borrower in the joint names of the borrower and the Bank for the full estimate amount of house/property or for the outstanding loan amount whichever is higher against the risk of fire/riots/earthquakes/lighting, floods etc. A copy of the policy is to be kept in the Bank. The borrowers shall renew the insurance for the period of the loan for the full estimate amount of house/property or at least for the outstanding loan amount. If renewal of the insurance is not done by the borrower within the stipulated time, renewals will be done by the Bank debiting the loan account without notice. The Branch Manager shall see that the insurance is renewed within the time limit.
Overdrafts can be sanctioned to wholesale and retail traders in essential
commodities and other goods, professional and self-employed persons, licensed
contractors, persons owned business enterprises, timber merchants, quarry owners etc.
In the case of working capital requirements, limit shall be fixed in accordance with the
cash flow, availability of stock etc.
Wholesale and retail traders in essential commodities and other goods are those
engaged in selling goods in small lots/quantities to the general public or to ultimate
consumers.
Professional and self-employed persons are those persons whose activities are carried
out by using the skill and labour of the individual or that of his/her family members.
Medical practitioners including dentists, chartered accountants, lawyers, engineers,
architects, surveyors etc. come under this category. Applications of such members for
working capital requirements will alone be considered under the scheme. Registration
certificate, professional certificate from the respective institute/authority shall also be
produced.
Business Enterprises: Individuals or firms managing small and medium business
enterprises established mainly for the purpose of providing services, personal or
household, such as laundry, beauty salon, computer center, Xeroxing, advertising agency,
travel agency, yoga center, bakeries, boutique, interior designing center, wedding
planner, food truck, pottery, floral shop, organic farming, jewelry, restaurant, coaching
center, hobby center, daycare center, .stationary shops, repairing and servicing center, or
similar other establishments having investment in plant and machinery will be eligible
for overdraft/cash credit facilities.
Quarries: Breaking of rocks into pieces of rubble, metals of different sizes and rock
powders by using explosives or otherwise will mean as quarry for the purpose of
advancing. The plot where rock blasting is done and collateral security sufficient enough
to have a margin of 50% should be provided as security.
Licensed Contractors intending to avail overdraft have to present the details of work
allotted showing the amount, as certified by the authority granting the work and the limit
that can be sanctioned will be limited to 75% of such amount or 50% of the distress value
of the security offered, as valued by the empanelled chartered valuator, whichever is
lower. On sanction, the borrower has to execute an irrevocable power of attorney in
favour of the Bank and accepted by the competent authority, to receive the full amount
of the work allotted and it shall be deemed as primary security. Limit will be reduced to
proportion of payments received being part bills, released at various times. On renewal
of the credit facility, borrower has to present a letter from the authority concerned
showing the quantum of amount already released, and balance if any, remain to be
released
Overdrafts are usually allowed for a maximum period of one year.
Maximum amount sanctioned as overdraft shall be ₹ 50 lakhs. Maximum amount sanctioned will be fixed in accordance with the cash flow, availability of stock, value of security etc.
A margin of 10% to 50% in the case of primary securities, depending upon the type and 50% in the case of collateral securities shall be maintained, while considering the limit of Cash Credit.
Borrowers have to furnish sufficient and valuable landed property as security to the satisfaction of the sanctioning authority. Bank can insist upon production of primary and collateral securities. In the case of working capital requirements in industries and business, goods involved in all stages have to be hypothecated to the Bank and will be treated as primary security. In the case of licensed Government contractors, power of attorney duly executed by the party and accepted by the competent authority has to be given to the bank to receive the whole payments related to the works. Collateral securities can be in the form of landed property, gold, insurance policies, Government and other trust securities, NSC, fixed deposits with the Bank etc.
Amount can be withdrawn by cheque issued to the clients/customers of the borrower to their respective accounts subject to 90% of the cash credit limit sanctioned. The borrower is liable to keep 10% of the cash credit limit always in the current account. In no case amount of advance together with interest shall not exceed the overall limit sanctioned.
The overdraft facility will be terminated and the advance will be
recalled if
>> the cash credit account becomes out of order as defined by the Reserve Bank of India
>> willful default is committed by the borrower
>> the funds are used for purposes other than for which it is sanctioned
>> any of the conditions upon which the facility was sanctioned is violated
>> the account is not renewed in time.
Primary and collateral securities other than in the forms of land and documents have to be comprehensively insured for the value of such securities, in the joint names of the Borrower and the Bank. Amount for insurance have to be arranged by the borrower. The Bank will arrange for insurance and renewals if insurance or renewals are not done by the borrower within the stipulated time, debiting the cash credit account without notice. The Branch Manager shall see that the insurance is renewed within the time limit.
o Stock Statement as on date of inspection duly signed by the Branch Manager
o Profit and Loss Account and Balance Sheet for the previous year
o License of the business
o Pollution certificate, in the case of quarries
o If the building is rented, current rent agreement obtained from the land/building owner
o Recommendation of the Branch Manager along with a brief report of the business
o Pre sanction and post sanction inspection and their reports
o Quarterly stock statement collected from the borrower and verified by the Branch
Manager
o Confirmation certificate obtained from the borrower periodically.
This loan can be sanctioned for purchase of any kind of vehicle such as two wheelers, cars, jeeps, buses, lorries, auto rickshaws and other vehicles
Maximum loan amount of ₹ 15 lakhs
For new vehicles, 80% of the invoice price will be advanced. If the vehicle proposed to be purchased is a second hand one, it shall not be old for more than 3 years from the date of show room sale. In such cases, loans applied/sanctioned shall not exceed 70% of the estimated /insurable value of the vehicle.
The maximum period of loan shall be 7 years for new vehicle. If the vehicle is a second hand one, the maximum period shall be 4 years.
The vehicle purchased by availing the loan will be treated as primary security. In addition, collateral security to the satisfaction of the Branch Manager and the sanctioning authority shall be furnished. Landed property, salaried sureties, fixed deposits, pledged insurance policies, gold ornaments etc. can be accepted as securities. The collateral security in the form of landed property shall have a distress value equal to that of the loan amount. The vehicle shall also be hypothecated to the Bank and hypothecation agreement to be executed.
In the case of new vehicle, the cost as appearing in the proforma invoice will be remitted directly to the supplier/dealer after collecting the margin money from the loanee. In the case of second hand vehicle, the value as appearing in the insurance certificate will be paid to the existing owner of the vehicle and the balance amount, if any, shall be paid by the loanee.
The vehicle purchased by utilizing the loan amount has to be insured comprehensively (bumper to bumper insurance) in the joint names of the Bank and the borrower and the policy shall be kept in the Bank. The borrower has to remit the amount of such insurance charges in the current/savings account kept in the Bank. The insurance charges will be paid to the insurance company by debiting the amount to the borrower’s account. The borrower shall arrange renewal of insurance. Bank will arrange for renewal of insurance policies, if not renewed by the borrower, by debiting the amount to the concerned loan account without prior notice. The Branch Manager shall see that the insurance is renewed within the time limit.
The borrower shall remit all taxes payable to the authorities in time and on failure, bank can debit the same in the deposit account or loan account of the borrower.
In the case of purchase of a new vehicle, registration of the vehicle have to be completed within 15 days from the date of disbursement of the loan with the bank’s lien noted in the RC book. In the case of purchase of a second hand vehicle, transfer of registration shall be completed within one month with the bank’s lien noted in the RC book. Attested true copy of the registration certificate shall be obtained and kept with the loan file. The duplicate key of the vehicle shall also be obtained and kept in the custody of the Bank.
In the event of default in repayment of instalment of loan and the loan account is identified as NPA, the bank has the lawful right to seize the vehicle and arrange for its sale. For this purpose the borrower has to submit a duly signed blank transfer form in stamp paper along with sale letter in favour of the Bank at the time of disbursement of the loan
In the case of an accident, the borrower shall inform the Bank, the Insurance Company and the Police about the details of the accident and the extent of damage caused to the vehicle. An undertaking to that effect shall be submitted to the Bank before the disbursement of loan amount.
The vehicle shall be registered in the name of the first applicant of the loan.
Members who secured admission for professional/higher studies can apply for loan to meet admission fee, tuition fee and other fees including examination library fees/ laboratory fee, cost of books, purchase of equipment’s/computer/instruments, payment of caution fees, building fund, capitation fees, refundable deposits for self-financing institution with supporting receipts, expenses for boarding and lodging of the residential hostels. Any other expenses required to complete the course like study tours, project works thesis etc., will also be eligible for finance under these sub rules.
The candidate must have a strong academic record. The age of the candidate must fall within the bracket of 18 to 35 years at the time of submission of the loan application. The applicant should have secured admission to a College or University affiliated to the University Grants Commission (UGC)/All India Council for Technical Education (AICTE)/Government. etc., if studying in India and equivalent courses offered by reputed overseas Universities, Institutions or Colleges, if studying abroad. The proof of admission such as admission letter shall also be shared to the Bank. Since Banks favour courses that are job-oriented, the applicant's chosen course must be technical or professional in nature. Students pursuing full-time courses need to have a co-applicant who can be either a parent/guardian or spouse/parent-in-law (in the case of married candidates). The co-applicant must have a regular income source to repay the loan. Copy of mark sheets of 10th/ 12th /UG/PG as the case may be, shall be submitted along with the statement of course expenses/cost of study and its proof. The copy of the mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable shall also be produced.
Maximum loan amount is ₹ 10 lakhs for studying in India and ₹ 20 lakhs for studying abroad with a loan margin of 15%.
The maximum period of loan shall be 7 years after commencement of repayment.
Collateral security to the satisfaction of the Branch Manager and the sanctioning authority shall be furnished. Landed property, salaried sureties, fixed deposits, pledged insurance policies, gold ornaments etc. can be accepted as securities. The collateral security in the form of landed property shall have a distress value equal to double the loan amount.
Generally disbursement of loan will be made directly to the educational institution in instalments as and when the proof of demand is produced to the satisfaction of the disbursing authority. To meet the preliminary expenses 10% of the sanctioned loan amount will be paid direct to the loanee by crediting the same to the account of the borrower kept in the Bank.
Repayment of loan shall commence after 12 months of completion of the course or 6 months after getting employment whichever is earlier. The loan is to be repaid in 84 monthly instalments after commencement of repayment. Interest accrued during the moratorium period shall be remitted monthly after disbursement of first instalment .The applicant can opt for repayment of the loan in instalments plus interest.
In the event of default in repayment of instalment of loans and the loan account is identified as NPA, the bank reserve the right to proceed against the borrower/sureties for recovery of the loan in part/lump and such actions initiated by the Bank shall not be questioned by the borrower of the sureties.
The borrower (student) shall have to submit undertaking that he/she would not participate in any unlawful activity during the course of his study which would debar him/her from continuing his/her studies and he/she would follow all the rules and regulations laid down by the educational institution, that he should not enter into any obligations of financial liability during the currency of the loan, that he would strive to secure a suitable employment after completion of course, that he would not change the course of study or the place of study or the educational institution or take up employment during the period of the course without the Bank’s prior permission in writing. At the time of submission of application for loan, applicant shall submit a detailed projected expenses of the course for the entire period of study of the course together with selection order and prospectus showing the fee structure and other expenses. Expenses for proposed boarding and lodging of the student shall also be shown in the projected estimate.
The Branch Manager shall review the performance of the student by obtaining half yearly/yearly progress reports from the concerned educational institution. In the course of review, if it is found that the student has discontinued the course, the Bank has the lawful right to recall the loan and enforce recovery, if found necessary.
Members can avail this facility for supporting his/her son/daughter, husband/wife or any other dependent family member, who is educated but unemployed, to go abroad for employment This loan is for meeting the initial expenses like visa processing charges, ticket expenses, basic caution money to be kept in bank accounts, agent’s fees, other incidental expenses etc
The applicant shall be either the parent/guardian or spouse/parent-in-law (in the case of married candidates) of the person propose to go abroad for employment. The applicant must have a regular income source to repay the loan. Copy of mark sheets and certificates of the examinations passed by the person proposed to go abroad 11 (10th/12th/UG/PG/professional courses and other examinations passed as the case may be) shall be submitted along with the statement of expenses and its proof. The copy of the mark sheet (score report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable shall also be submitted.
Maximum loan amount is ₹ 20 lakhs with a loan margin of 15%.E.4 Period:
The maximum period of loan shall be 5 years.
Collateral security to the satisfaction of the Branch Manager and the sanctioning authority shall be furnished. Landed property, salaried sureties, fixed deposits, pledged insurance policies, gold ornaments etc. can be accepted as securities. The collateral security in the form of landed property shall have a distress value equal to double the loan amount.
The amount will be credited to the borrower’s savings bank account maintained with the bank
Repayment of loan shall commence after three months of disbursement. The loan is to be repaid in 60 monthly instalments after commencement of repayment. Interest accrued during the moratorium period of 3 months shall be remitted monthly.
In the event of default in repayment of instalment of loans and the loan account is identified as NPA, the bank reserve the right to proceed against the borrower/sureties for recovery of the loan in part/lump and such actions initiated by the Bank shall not be questioned by the borrower or the sureties.
At the time ofsubmission of application for loan, applicant shall submit a detailed projected expenses of the person propose to go abroad for employment and other incidental expenses connected with it along with the proof of the same. Expenses for proposed boarding and lodging can also be included in the projected estimate.
Loans can be sanctioned for the following purposes as per this scheme
Loans to a maximum amount of ₹ 5 lakhs for a
maximum period of 3 years can be sanctioned to individual farmers, directly engaged
in agriculture and allied activities, viz. dairy, animal husbandry, poultry, bee-keeping
and sericulture. This will include:
>> Crop loans including loans for traditional and non-traditional plantations,
horticulture and allied activities.
>> Medium and long term loans for agriculture and allied activities such as for purchase
of agricultural implements, machinery and developmental loans for allied activities
>> Loans for pre and post-harvest activities viz. spraying, harvesting and transporting
of their own farm produce
>> Loans to distressed farmers indebted to non-institutional lenders.
>> Loans under Kissan Credit Card Scheme
>> Loans to small and marginal farmers for purchase of land for agricultural purposes.
>> Loans to farmers for installation of solar power plants
>> Loans for similar other agricultural and allied activities
>> The amount of loan shall be fixed on the basis of the scale of finance set by NABARD
Loans to a maximum amount of ₹ 20 lakhs for a
maximum period of 5 years can be sanctioned to individuals for
>> Construction of storage facilities like warehouse, market yards, godowns and silos
including cold storage units/cold storage chains designed to store agriculture
produce/products.
>> Soil conservation and watershed development.
>> Plant tissue culture and agri-biotechnology, seed production, production of biopesticides, bio-fertilizer, and vermi composting.
>> Similar other activitie
Loans to a maximum amount of ₹ 20 lakhs for a maximum period of 5 years can be sanctioned for setting up of Agri-clinics and Agri- business centres
: Loans to a maximum amount of ₹ 10 lakhs for a maximum
period of 5 years can be sanctioned for
>> Processing of fruits, vegetables, milk, milk products including their packaging,
storing and transportation
>> Freezing products like fruit, vegetables, meat, fish, sea foods etc.
>> Canning of fruits, vegetables including mushrooms, meat, fish, crustaceans, other
sea foods etc.
>> Processing of fruits and vegetables into different products such as juices,
concentrates, sauces, jam, jellies, marmalades, chips, flakes, powders etc.
>> Production of bakery and confectionary products-biscuits, bread, cakes, cookies,
toffee etc.
>> Production of starch and starch products - sago, corn, noodles, macaroni, vermicelli
>> Similar other projects.
Borrowers have to furnish sufficient and valuables as the guarantee security to the satisfaction of the sanctioning authority. Bank can insist upon production of primary and collateral securities. Collateral securities can be in the form of land, gold, insurance policies etc., Government and other trustee securities, NSC, fixed deposits with the Bank etc. In the case of landed property security, it shall have a distress value equal to double the amount of loan.
The amount will be credited to the borrower’s savings bank account maintained with the Bank.
>> A report regarding the project and its function from the borrower
>> Report about the project by the Branch Manager.
>> License of the project.
>> Pre sanction and post sanction inspection reports
>> In the case of construction of storage facilities like warehouse, market yards,
godowns and silos including cold storage units/cold storage chains designed to store
agriculture produce/products, copy of Panchayath/Municipal sanction shall also be
submitted
In the event of default in repayment of instalment of loans and the loan account is identified as NPA, the bank reserve the right to proceed against the borrower/sureties for recovery of the loan in part/lump and such actions initiated by the bank shall not be questioned by the borrower of the sureties.
Loans can be sanctioned for the following business-related purposes generally
coming under Micro, Small and Medium Enterprise:
>> To start a new business/company or expand the existing enterprises
>> To purchase plant & machinery such as testing or lab equipment/machines, electrical
appliances, furniture, spare parts, etc.
>> For manufacturing industries, ancillary industries like manufacturing components
for machines for other firms or medium-sized businesses, service industries like
electronics retailers and the construction sector etc.
>> To start feeder industries and quarries or mining units.
>> To start small scale business like holiday resorts, rice milling unit, cold storage, skill
development centre, ladies garments, production of jute gunny bags from fabric,
biodegradable plastic bags, baby & adult diaper and sanitary pads, aluminium foil
for food packaging, food and beverage industry, kitchen spices (masala powder),
spices powder, readymade mixes (red chilli powder, sambar masala, biryani masala,
chicken fry masala, and garam masala), spice powder (turmeric, chilli, pepper,
coriander and cumin powder),
>> To purchase of equipment like computers, air conditioner, furniture & fixtures and
other fixed assets like commercial vehicle for the purpose of running business.
>> For the construction of building spaces or acquisition of land/factory or commercial
properties for industries/enterprises
>> To meet working capital requirements like paying salaries, purchase of goods and
raw materials, stocking up inventory, marketing and advertising purposes, etc.
>> To buy new or pre-owned machinery/equipment or a fleet of vehicles
o All business enterprises engaged in manufacturing, services and trade sector will be
covered under the scheme. Existing and new units are eligible under the scheme.
o MSME units irrespective of constitution i.e. individuals, proprietorship, partnership,
limited companies, trust association are eligible
o In case of individual/proprietorship entry age is restricted up to 65 years (age at the
time of sanction) and the repayment period should not exceed the day on which the
applicant attains the age of 70 years.
o Enterprises engaged in speculative activities/real estate activities are not eligible for
financial under this scheme.
o Current account shall be maintained with this bank. The cash flow of the particular
project financed by the bank should be routed through the current account maintained
with the bank for running the business.
For the construction of building spaces, copy of Panchayath/Municipal sanction to be submitted. For the construction of building spaces/factory for industries/enterprises, copy of pollution certificate and other necessary documents shall also be submitted.
Maximum loan amount of ₹ 40 lakhs, subject to the conditions specified hereunder: For existing units: Maximum 25% of projected annual turnover for existing business/ enterprise assessing sales performance of preceding 3 years and average growth of the business unit. For new units: Maximum 25% of validated year around projected turnover and assessing the capability of the borrower to raise adequate funds by the Branch Manager
The Bank offers a maximum amount of ₹ 40 lakhs as MSME loan with a loan margin of 20%
The maximum period of loan shall be 7 years. In the case of new business/ enterprise, repayment of the loan shall commence after 12 months of disbursal of the loan or on the month on which the business/enterprise becomes operational whichever is earlier. The waiting period is assessed accordingly. The borrower shall remit the interest accrued during the waiting period.
Collateral security to the satisfaction of the Branch Manager and the sanctioning authority shall be furnished. Landed property, fixed deposits, gold ornaments etc. can be accepted as securities. If the collateral security in the form of landed property is offered, it shall have a distress value equal to double the loan amount. Salaried sureties, pledged insurance policies etc. can be furnished as additional securities.
The sanctioned loan amount will be paid directly to the loanee by crediting to the current account of the borrower. For new units, the Bank has the power to disburse the loan amount as instalments as per the requirement.
In the event of default in repayment of instalment of loans and the loan account is identified as NPA, the bank reserve the right to proceed against the borrower/sureties for recovery of the loan in part/lump and such actions initiated by the bank shall not be questioned by the borrower of the sureties.
Loan against property (LAP), otherwise known as mortgage loans, is offered to borrowers for any personal purpose such as meeting expenditure on education, marriage, healthcare, etc. other than speculative purpose. An undertaking to this effect shall be obtained from the customer and no documentary evidence for end use of the fund will be insisted upon. Loans under LAP will not be permitted for business purposes.
The applicant must have a regular income source to repay the loan.
Maximum loan amount is ₹ 10 lakhs.
The maximum period of loan shall be 10 years.
Collateral security to the satisfaction of the Branch Manager and the sanctioning authority shall be furnished. Landed property, salaried sureties, fixed deposits, pledged insurance policies, gold ornaments etc. can be accepted as securities. The collateral security in the form of landed property shall have a distress value equal to double the loan amount.
The amount will be credited to the borrower’s savings bank account maintained with the bank.
In the event of default in repayment of instalment of loans and the loan account is identified as NPA, the bank reserve the right to proceed against the borrower/sureties for recovery of the loan in part/lump and such actions initiated by the Bank shall not be questioned by the borrower or the sureties.
At the time of submission of application for loan, applicant shall submit a detailed projected expenses
The Branch Manager shall certify the end use of the loan amount and the said certificate shall be prepared in duplicate and the original shall be forwarded to the Head Office and the duplicate shall be kept in the loan file.
Share linking will be in accordance with clause 41 of the byelaw of the Bank. Accordingly the borrower should hold shares at 5 percent of his borrowings if such borrowings are unsecured and 2.5 percent if borrowings are secured
Any change in the address of applicant or sureties or co-obligants in regard to place of occupation/residence or employment have to be intimated to the Bank immediately.
Bank will have the right to add, amend, alter or delete any of the above rules, without notice to the borrower and to impose any condition other than those mentioned on any loan availed for the purpose mentioned in the application form.
Applications for loan under this sub rules will not be entertained from those who have outstanding loans for the same purpose or who are already in default to the bank as borrower or surety or co obligants in other types of loans.