Target Group:

• Farmers/ Agriculturist in rural/semi urban areas.
• Other existing clients having satisfactory dealings with us
• Any other persons introduced by our reputed existing clients

Eligibility

• Farmers/ Agriculturist/Other customers with satisfactory dealings (observing KYC Norms),

or

• Other persons with proper introduction (in compliance with KYC norms) by minimum one year old existing customers of high standing/reputation.

Age:

Minimum 18 years and maximum 70 years.

Purpose

• For Agriculture & Allied Activities
• For consumption/ domestic /medical purposes (but not for speculative purposes)

Delivery Channel:

• All rural/semi urban branches (for agriculture & other purposes as above).
• Identified urban/metropolitan branches (for domestic/consumptive/medical purposes). The Zonal Offices will identify suitable branches for this purpose in order to ensure proper supervision of such portfolio.

Type of facility:

• Term Loan: Term loans may be sanctioned under the scheme for agriculture as well as non-agriculture purposes.
• However, Agriculturist may alternatively be given cash credit facility whose assessment will be based on scale of finance/ cropping pattern. Usual supporting documents to prove ownership of land may not be insisted upon as liquid security in the form of gold/Jewellery covering the loan amount is available.

Loan amount:

The loan amount will be determined in the following manner:

• Minimum amount of loan: Rs 5,000/-

• Maximum amount of loan: It will be restricted to Rs.5.00 lacs, subject to following norms:

Here, Net weight (NW) means Gross Weight of the jewel in grams less one eighth of gross weight in grams (i.e. one gram will be reduced from the weight of the Jewellery for every 8 grams for wastage, refining losses, etc and while computing gross weight, weight of stone will be reduced from the same).

Valuation:

By shroff /jewel appraiser approved for valuation of Jewellery for the purpose of Wealth Tax Assessment. (The Zonal Offices would notify panel of such appraisers whose certificate alone will be accepted by the Branches.)

Margin:

35% of the valuation of gold Jewellery.

Rate of Interest:

• Loan for Agricultural Purposes: PLR-1.00% with half yearly rests
• Loan for other purposes:
  Upto Rs. 1.00 lacs PLR (Floating) with monthly rests.
  Above Rs. 1.00 lacs PLR+1.00% (Floating) with monthly rests.

Valuation Charges/Appraiser’s fees:

Rs 50 per Rs 10,000 of loan amount or part thereof subject to a minimum of Rs.50/- and maximum of Rs.200/-. The Zonal Head may review the charges based on local condition.

Processing Fees: NIL

Disbursement:

By credit to SB or CC or any other appropriate account of the borrower.

Repayment Period:

Loan for Agricultural Purpose: Repayment will be tied up with the harvesting period.

Others:

1. Repayment in 36 EMI
    
2. Repayment in 12 quarterly installment (principal + interest)
     
3. Short term loan for 1 year with monthly servicing of interest and bullet payment of remaining dues.

Mode of Repayment:

• Agriculturist: Repayment will be tied up with the harvesting period and accordingly repayment schedule will be fixed.
    
• Others: 36 monthly installments (minimum 12 PDCs will be obtained & before exhaustion of the same fresh 12 PDCs will be obtained).

Security:

Pledge of the gold ornaments.

Other Guidelines:

• The applicant should be properly introduced & his/her identity should be properly verified before the loan is granted.

• A declaration must be obtained from the borrower regarding his/her/their bonafide ownership of the ornaments.

• No advance should be granted against security of primary gold, i.e: 24 carat gold bars & biscuits.

• If the facility of valuation/appraisal of gold ornament as per guidelines provided in this circular is not available in operating area/nearby places of any branch, the Zonal Head should restrict such branches from making finance against gold Jewellery.

• The branch will keep gold Jewellery in joint custody.

Documentation:

• Loan application form (Specimen Application Form enclosed as Annexure-A).

• Certificate of appraiser/valuers countersigned by the borrower/owner.

• Letter of Pledge/ADV4/SD11 (where applicable)/ADV 16.

• Promissory note.· Sanction letter/Acknowledgement of sanction.

• Any other document as found suitable.

Other Service Charge:

Please refer to Service Charge