Some of the basic conditions for loan are:
- Loans only for members of the Bank.
- Property documents must be submitted.
- 2 Sureties are required.
- Maximum limit of Loan is Rs.30,00,000
- 2% deduction for share.
- Original R.T.C.
- R.C original with copy
- Insurance policy Document.
- Vehicle Key.
Cash Credit Loan (Overdraft)
Financial accommodation to affiliated cooperatives for working capital requirements will be given under the CCL. CCL may be issued to the individual member against their term deposits and may be called Cash Credit Loan. Such loans may be issued up to 85% of the deposits. The Cash credit shall be renewed every year. Cash Credit Loan is also known as working capital. This is one type of loan granted to business houses educational institutions, etc. This loan account provides overdraft facility. It is Similar to saving bank account. Because any number of deposits and withdrawal is permitted.
Essential Requirements and conditions for C.C. Loan are:
- Two members’ surety.
- Property documents
- National Savings Certificate or Insurance Policy.
- Operation through cheque only.
- All the business transaction must be done through C.C.L. account only.
- On sanctioned loan amount 2% deduction for shares
- Renewal should be done every year.
- Rate of Interest: 13.75% as on 31-03-2014
- Penal Charges: 3%
These loans are granted on the pledge of agricultural or commercial outputs. It is very helpful to farmers. Under this total value of the agricultural outputs is calculated and then find out the market value. The outputs will be kept in bank godown. During the pledge of goods anything is happened to the goods, bank is not responsible for that. Only loan party is responsible.
- When agricultural and commercial outputs are pledged, loan is sanctioned only up to 70% of its market value. It is granted only to “A” class, “B” class and “E” class members.
- Detailed information regarding previous repayment
- The loan amount can be drawn as and when they want or also in lumpsum
- If party fails to repay the loan then bank will sell the agricultural outputs and recover the loan amount. If excess money is collected that amount will be returned to the party.
- The loan party must be pay godown rent, commission, and interest for loan. Here interest rate is not fixed. It varies.
- Member should get the certification if they want their pledged property back and property is returned after charging interest, commission, rent and other expenses.
- Normally maximum period is 6 months. But if the borrower wants to extend the time period then they have to pay the interest.
Jewel loan is offered at competitive rates at the doorsteps of the customer with minimum paper work and low interest rate. An advance against gold will be granted to nominal member at the discretion of the manager authorized by the Board from time to time.
- It is granted only to “A” class, “B” class and “E” class members. Loan sanctioned on ornaments not on coin, bullion etc.
- Management appoints a jewel appraiser other than the bank for examining the purity and weightage of jewelry. On net weight loan amount will be sanctioned.
- The borrower must declare that the jewels are his own and he must agree to abide by the valuation of the Banks Appraiser.
- The time period for repayment can be for three months, six months, and twelve months. Repayment can be through instalments or in one lumpsum.
- If the member does not pay the loan amount within the due date then notice will be sent to repay the amount. If the member does not respond, then the jewellery will be put for auction after the announcement is published on newspaper.
ADVANCE AGAINST DEPOSIT LOAN:
- Loans may be issued against the deposits to the depositors not exceeding 85% of the deposits. The rate of interest charged on this loan is 1% more than deposit interest.
- The repayment of these loans is to be made in instalments or lumpsum. Otherwise at the maturity of the deposits, remaining balance will be paid to the concerned appropriating the loan amount and its interest. Deposit maturity date and loan maturity date is one and the same.
ADVANCES AGAINST GOVERNMENT SECURITIES:
- Loan can be obtained against government securities like NSC, LIC etc. It is granted only to “A” class and “B” class members for 12 months.
- Maximum limit of loan amount is 90% on the surrender value of LIC.
- The original policy is transferred to the bank by the insurance company but the premium is to be paid by the borrower to the insurance co.
- The repayment period and interest rate is fixed by the management. If the borrower fails to repay the instalment within the due date penalty is charged.
Self Help Group Loan
- In order to give undivided attention to rural credit and rural development projects, the bank took a pioneering step in introducing self help group loan.
- To provide savings habit and enable the rural poor to multiple the funds available with them and create an atmosphere conducive to mutual help and togetherness.
- To identify and upgrade the skills available with the rural women in order to increase the level of income generation.
- The loan will be sanctioned for the purpose of purchase / construction / extension repairs / renovation of new/second-hand residential house/flat/plot of land and furnishings.
- Indian citizen above 21 years having regular source of income not less than Rs. 48,000 per annum can avail this loan.
- The maximum period allowed by the Bank is 180 months.
- Interest on the amount of the loan will be applied at the prevailing rate per annum on daily reducing balance with monthly rests.
- The loan will be secured by Equitable / Registered mortgage/extension of mortgage of the land and building/flat for which the loan is to be sanctioned. Liquid securities of adequate value in the form of Life Insurance policies, or such other tangible security as may be deemed appropriate, may be pledged by the customer in lieu of mortgage of the residential property financed by the Bank. Wherever creation of mortgage is likely to be delayed for any valid reason, suitable security including third party guarantee, as considered necessary, may be taken for the interim period.
- When the work is completed within 12 months from the date of loan sanction the last/final installments will be start/begin from the date of final instalments 0.5% rebate for early payment of loan installment.
- Repayment period and the rate of interest relating to the construction of residential and commercial building are decided by the management.
- This loan is sanctioned to the A class members on the ex-showroom price upto the extent of 85% with some simple paper work and a small amount of processing fee.
- All the documents like original Registration Certificate, Insurance Certificate, RTC, LIC policy, valuation report, vehicle key relating to the ownership of the vehicle is to be submitted at the time, when loan amount is paid to the borrower.
- The Bank has appointed one person for valuing second hand vehicle and loan amount does not cross the 50% of the vehicle value.
- Repayment period for new vehicle is 5 years whereas 3 years for Second hand Vehicle.
- Additional security is required under certain circumstances while granting loan against old vehicle.
- If the borrower fails to repay the loan amount, bank can publically auction the vehicle. The amount received from the auction is appropriated towards the loan amount including interest and all other related expenses and any amount remaining therein is paid to the borrower.
- Loan amount sanctioned is 100% on private vehicle, 80% on the value of tourist vehicle,
MID TERM SALARY LOAN:
- These loans are granted on the security of monthly assured income of salaried class people. Income proof is to be submitted (Form 16 along with salary certificate from the employer)
- Only A class member can apply and 2 member’s surety is required for this loan. Additional security is to be submitted if required.
- Loan instalment amount deducted from their salary every month. Loan Repayment Period is 60 months.
MID TERM PERSONAL LOAN:
- This type of loan is granted to middle class people for personal, family or household purposes.
- This loan is sanctioned to the A class members only. Loan limit is Rs.5,000/- and 2 sureties are required.
- Rate of interest is decided by board only and it is changed by time to time. Low rate of interest is charged.
- Loan Repayment Period is 36 months.
MID-TERM MORTGAGE LOAN:
- This loan is granted after pledging original documents relating to the property and that should not have any previous loan from any financial institutions. Documents of the pledged property must be examined along with the advice of the legal adviser who will be appointed by the management. Loan will be sanctioned only if the documents are satisfied by the legal advisers.
- Repayment period will be decided by the managements.
- Only ‘A’ class member can borrow this loan facility.
- Two members of the management will evaluate the property and confirm the market value.
- Loan amount sanctioned should not exceed 50% of the pledged property.