BARODA GUJARAT GRAMIN BANK       REACHING TO UNREACHED.....
Advance Schemes
HOUSING LOAN TO INDIVIDUALS

HOUSING LOAN to INDIVIDUALS

 
 

Purpose :

  • Construction of new dwelling unit, purchasing of new/old dwelling units which are not older than 20 years.
  • For dwelling units which are older than 20 years, Regional office will authorize such cases on selective basis, subject to ascertaining structural soundness of the building by obtaining an approved engineer’s certificate, certifying the structural soundness as well as residual life of the building which should be at least 5 years more than the repayment period of the loan.
  • Purchase of plot of land subject to the condition that a house will be constructed thereon within  -2-  years from the date of purchase of plot.
  • Repayment of the loan already availed from any other Bank / Housing Finance Company and or other sources, provided documentary evidences are produced.
  • For repairs /renovation/improvement /extension of the existing house to :
  • Our existing housing loan borrowers
  • New borrowers
  • Borrower who have availed housing loans from other bank / H F C
  • For houses / flats constructed / purchased recently from own sources to good clients selectively and sparingly subject to following additional conditions.
  • Such loans are to be considered only to applicants who secure A and B risk rating as per Credit Risk Rating Format.
  • House / Flat should have been constructed / purchased recently (not prior to 24 months)
  • Margin 20%
  • Valuation Report to be obtained
  • Branch to satisfy that there are no institutional / external borrowings against the house and the amount already spent on the house has come from own sources of the customers.
  • Branch to verify and keep on record relevant money receipts, bills, documentary proof of payment /expenditure etc.
  • Creation of equitable mortgage after obtaining title clearance report from Bank’s  approved advocate.
Property under litigation and in poor condition should not be considered for financing.

Eligibility :

  • All individuals singly or jointly.
  • Age: Minimum age must be 21 years. Principal applicant must be employed     minimum for last three years. However, the minimum age of co- borrower can be 18 years. Age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons and 65 years in case of others.
  • Person who is already owing a house is also eligible for housing loan for construction / buying a second house / flat in the same village / town / city or other village / town for the purpose of self- occupation.
  • Person who has been provided accommodation by his / her employer is also eligible for loan ,even through he / she is not in a position for its occupation in the near future and proposes to let out on rental basis.
  • Housing loan to HUF are not to be considered as the housing loan is not meant for the purpose of family business of HUF and also there are certain legal complications.
  • In the case of individuals who have taken loan for construction /acquisition of house / flat from other bank / HFC and need supplementary finance, loan may be considered after obtaining part passu or second charge over the property mortgaged in favour of other bank/ HFC and or /against such other security as deemed appropriate.

Maximum Amount of loan :

  • Rs. 15.00 lacs.
  • For repairs / renovation /extension : Rs. 5.00 lacs
  • However, total amount of the loan sanctioned including loan for repair / renovation /extension should not exceed Rs. 15.00 lacs.
  • The above is the maximum amount of loan. However the actual quantum of loan should be arrived at after consideration the income criteria and repaying capacity as laid down under point No. 4 & 5 herein below.
Income Criteria :
The maximum amount of loan should not exceed the following :
  • In case of salaried persons equal to 40 months gross income subject to repaying capacity.      
  • In case of others viz. Professionals / self employed / business persons etc., -4- times of net average (last three years ) annual income plus depreciation.
  • Wherever income of the family members is clubbed, they should be made   co –borrowers.
  • Considering the average life expectancy of about 65 years, the pension income is not to be included in the income for calculating the eligible loan amount.

Repaying Capacity :

  • Repaying capacity of the borrowers is to be calculated at 40% of the borrower’s gross income.
  • However, higher repayment capacity may be determined by taking into account age, income qualification, number of dependents, assets, liabilities stability / continuity of employment / business of the applicant and the  co-applicant’s income.

Margin :

  • For purchase of plot: 20% of the cost of plot including registration charges and cost of stamp etc.
  • For houses / flats already constructed from own resources and loan is taken subsequently : 20% of the cost of construction / purchase price of house / flat.
  • For all other cases: 15% of the cost inclusive of cost of land, registration charges and cost of stamp etc.
  • For the purpose of finance, the cost should be estimated after obtaining valuation report from Bank’s approved valuer on a realistic basis at the current market value / cost of construction and other legal charges viz. Stamp duty, registration charges, legal expenses etc.

Security :

  • Mortgage of the property constructed / purchased.
  • If mortgage is not feasible, branch can accept at its discretion, security of adequate value in the form of life insurance policies, Government Promissory Notes, shares and debentures, gold ornaments or such other security as may be deemed adequate including third party guarantee from individual /s.
  • Even if it is possible to create equitable mortgage but customer desires that the equitable mortgage need not be insisted upon, in case branch may as a special case , accept at its discretion, security of adequate value in the form of life insurance policies, Government Promissory Notes, shares and debentures, gold ornaments or such other security as may be deemed adequate along with stamped undertaking that the borrower shall not create any charge on the said property to any third party and that he will create mortgage of the dwelling units / housing property at a later date if desired by the bank, be obtained from borrower. Margin on above securities is to be maintained as per extant guidelines applicable for financing against those securities.

Rate of interest :  

TENURE

FIXED RATE ( % p.a. with monthly rest)

Upto 5 years

9.00

Over 5 years and up to 10 years

9.25%

Over 10 years

9.50%

Repayment period :

  • Maximum – 25 – years.
  • Moratorium period maximum – 18 months or one month after completion of house / taking possession of flat / house which ever is the earliest.
  • Age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons and 65 years in case of others.
  • The repayment period can be extended up to 65 years of the age in case of salaried persons drawing pension subject to the condition that 40% of the pension is sufficient to pay EMI .In case EMI exceeds 40% of the pension, the borrower to deposit adequate amount in the loan account so as to reduce the outstanding amount of loan to the extent which can be serviced by          40 % of the pension.
  • In exceptional cases, this term may be extended beyond above age limit if borrower pledges FDRs / NSCs / Government Security etc. to ensure continuity of income for repayment of loan installment with interest if sanctioning authority is satisfied about the same.

Disbursement of  loan :

  • Outright purchase of house /flat ready for possession – Disbursement in one installment directly to the seller of the house / flat.
  • Construction of house / flat in 3 to 4 stages after physical verification depending on the progress of construction. Payment can be made either to the builder directly or to the borrower subject to verification of bills / money receipts / invoices etc. or certificate issued by approved valuer / architect certifying the progress of the work and the estimated expenditure having incurred thereof as the case may be. During the course of construction at least once valuation report from Bank’s approved / Government valuer must be obtained.
  • In case of repair / extension – Directly to the borrower subject to verification of bills / money receipts etc.

Processing charges :

  • New loans : Upfront fee @ 0.25% of loan amount only once at the time of sanction.
  • In case of loans taken over from other Banks/HFCs : NIL
  • Documentation charges (only once at the time of first disbursement )

Loan Limit

Charges

Upto Rs. 50,000/-

Nil

Above Rs. 50,000/- Upto Rs. 2/- lacs

Rs. 166/-

Above Rs. 2/- lacs  Upto Rs. 5/- lacs

Rs. 1,105/-

Above Rs. 5/- lacs  Upto Rs. 15/- lacs

Rs. 1,655/-

BARODA GUJARAT TRADERS LOAN

PRODUCT PROFILE OF

BARODA GUJARAT TRADERS LOAN

 
1 Nature OF Facility Over draft  or  Loan
2 Purpose  
  • Working capital requirements
  • Development of shop (e.g. purchase of equipment, P.C. , air conditioner, furniture etc. and not for purchase of shop ), for need based requirements subject to a maximum of 25% of the working capital limit sanctioned.
  • Non fund based facilities (i.e. Bank Guarantee and Letter of Credit)
3. Limit Minimum : Rs. 25,000/-
Maximum : Rs. 100 lacs
4. Eligibility
  • Individuals, Proprietorship, Partnership concerns, Firms, Private  Ltd. Cos. And Regd. Co.op societies engaged in trade of any commodity/goods required by the community and trading in them is not prohibited by law or opposed to public interest.
  •  Dealers in Silver / Gold Jewelers against the jewellery, but not against bullion / raw gold. (Borrowers to comply with the Licensing requirement for the business)
  •  Note : Officers in G/S IV and above can only consider and sanction loans to dealers in silver / gold jewellery up to their delegated powers.
  • (HUF & Public Ltd. Cos. Are not eligible)
  • The business units should have been established in the line of business for a minimum period of 2 yrs.
  • Trading units established by our existing customers with satisfactory dealings or their close relatives, even if these are established for less than 2 yrs.
Trading units of non – customers having less than two years establishment; with the prior approval of Regional authority.
5. Method of assessment of working capital limit The credit limit is to be considered as under.
  • 20% of the projected sales subject to verification of sales tax returns of previous years/quarters OR
  • Advance value of collateral assets to be charged, whichever is lower.
6. Method of assessment of loan for shop Development
  • Need based finance to be considered as per requirements subject to a maximum of 25 % of the working capital limit sanctioned
  • Working Capital advance & shop development loan together should not exceed Advance Value of collateral security or Rs. 100/- lacs whichever is less.
7. Rate of Interest Upto Rs. 50,000/-                                10.00 %
Above Rs. 50,000/- to Rs. 2/- lacs      10.50 %
Above Rs. 2/- lacs to Rs. 5/- lacs        11.00 %
Above Rs. 5/- lacs                               11.50 %  
8 Margin
  • 50% on market value as per recent valuation report of immovable property
  • 50% on approved shares/bonds
  • 10% on Bank’s own FDRs
  • 15% on the surrender value of Life Insurance Policies, NSCs, Government Bonds
9. Period 12 months subject to annual review.
10. Repayment Maximum 60 EMI (depending on repayment capacity)
11. Security   Tangible collateral securities in the form of mortgage of land (not agriculture land) and building
  • NOTE : Property to be mortgaged may be ONLY in the name of either Borrower, Proprietor, Partner, Director or their close relative (viz spouse, parent, brother sister, son, daughter ) who should stand as guarantor.
  • No loan can be considered against the property already charged to bank or against the residual advance value available in security offered and charged under Bob Traders Loan.
Valuation :
Branch to obtain a valuation report on the property to be mortgaged from Bank/Govt approved valuer. Further the valuation is to be done once in three years. Valuation fee is to be borne by the applicant.Age of Property
  • In case of loans;
    • Age of property should not be more than 25 years old. However for properties which are older than 20 years but not more than 25 yrs branch is to ascertain structural soundness of the property by obtaining an approved engineer’s certificate, certifying that structural soundness as well as residual life of the building should be at least 5 yrs more than the repayment period of the loan
    • For dwelling units which are older than 25 yrs, Regional Head may authorize such cases on selective basis, subject to ascertaining structural soundness of the building by obtaining an approved engineer’s certificate, certifying that structural soundness as well as residual life of the building should be at least 5 yrs more than the repayment period of the loan.
b). In case of overdrafts ;
AS regard overdraft facility secured by immovable property ;
  • Building less than 25 yrs old – guidelines applicable to general advance to be followed
  • Older than 25 yrs the branch will be required to carry out inspection of the property every year at the time of review of facility and obtain structural soundness report from architect every 3rd year along with  valuation of property
  • In case any defect is observed during inspection of the security or in architect’s report, branch will be required to ensure substitution of the security having requisite value immediately or ensure liquidation of the facility at the earliest but not later than 12 months period in any case.
ii) National Savings Certificates, Government Bonds, our Bank ’s Term Deposits, Assignment of Life Insurance Policies, approved shares & bonds standing in the name of the borrower/proprietor/ partner/director only. 
12 Documentation          
  • D.P.Note (as per constitution of borrower)
  • Letter of continuing security (in case of overdraft)/ Letter of installment (in case of loan)
  • Hypothecation of Goods covering Stocks, Equipment/other items as the case may be, purchased out of bank finance (wherever applicable)
  • Pledge /Assignment /Mortgage of collateral securities (as per terms & conditions of the sanction)
  • General form of Guarantee in case the immovable property charged to bank is in the name of third party.
  • Undertaking from the borrower to exclusively deal with our Bank.
  • The undertaking from the borrower declaring that he does not owe any overdue statutory dues like Sales Tax, Income Tax, Corporation Tax, Professional Tax etc. and has obtained /renewed licenses from concerned authorities required for trading in the merchandise /goods every year
  • Other documents as per constitution of the borrower and terms and conditions of the sanction
  • For Non – Fund based facilities, as per extant guidelines
13 Disbursement of loan for shop development                          Direct to suppliers. Branch to ensure end use..
14 Insurance
  • Property Mortgaged should be insured as per bank’s norms. Obtaining insurance against the stocks cover may not be a condition for sanction of the facility. However branches may counsel their borrowers to have the stock insured in their own interest at their cost.
15 Other conditions
  • Borrowers to route the sales and all other transactions through their Overdraft/Current A/c (in case of loan) with the branch
  • Stock statement to be obtained once a year i.e. as of last day of February, by 10th of march every year.
  • If government Bonds/ National Savings Certificates/ Life Insurance Policies/Bank Deposits are offered as collateral, banks extant guidelines norms to be followed for lien/assignment
  • Borrowers will not be considered for Working Capital assistance both under BARODA GUJARAT TRADERS LOAN as well as under our usual scheme for Retail Traders simultaneously
  •   However, Retail Traders enjoying finance under the existing scheme can have the facilities transferred into BARODA GUJARAT TRADERS LOAN, if they so desire, after providing for the collateral security.
  • Credit Rating id to be done as per extant guidelines.
  • Inspection to be carried out once in a year and inspection report to be kept on record.
  • Pre-sanction inspection to be conducted and report to be kept on record.
  • Obtaining of financial statements i.e. Balance Sheet and Profit & Loss A/c is dispensed with. However, declarations on annual sales supported by Returns/Assessment on Sales Tax, Income Tax etc. be obtained and kept on record at the time of annual review. In order to undertake “Credit Rating” in “Smaller Credit Rating “ module for loans above Rs. 25 lacs, branches are required to obtain all necessary financial returns.
  • As per I. Tax rules the firms having annual sales turn over of Rs. 40/- lacs and above are compulsorily required to get their books and a/cs audited. Therefore traders enjoying such facilities of limit over Rs. 25/- lacs should furnish audited balance sheet and the branch concerned is required to ensure that the funds are used in business and are not diverted. Besides, the stock etc. wherever possible, should be Hypothecated. However, the bimonthly inspection o stock and stock statement may be waived.

.
  Where security is in the form of our Bank’s FDR, the same should be appropriated in case there is a default  in servicing interest for one quarter and a/c slips back to NPABranch to endeavor that borrower displays a plate describing “Our bankers – Baroda Gujarat Gramin Bank       …………………Branch “ for getting publicityIn case of Guarantee and L/C, banks extant guidelines to be observed  
16. Processing & Documentation Fee As per Service charges circular in vogue.
17. Classification of Advance under priority sector Upto a limit Rs. 10/- lacs to be classified as Priority Sector above Rs. 10/- lacs to be classified as Non Priority Sector Advances and reported accordingly.
DHANLAXMI JUTH CREDIT CARD

 DHANLAXMI JUTH CREDIT CARD ( DJCC )

PARAMETERS PARTICULARS
OBJECTIVES Dhanlaxmi Juth Credit Card Scheme aims to provide adequate, timely and cost effective support to the SHG account holders to meet their consumption as well as production needs and facilitate operations under revolving cash credit facility.
ELIGIBILITY
  • SHG account should exist for a minimum period of six months from the date of opening of the Savings Bank account.
  • Regular savings / meetings.
  • Regular maintenance of books of accounts.
FIXATION OF DRAWING LIMIT
  • The limit is to be workout based on regularity of savings, meetings, maintenance of books of account etc. of an individual group subject to maximum of  6 times of savings.
  • The limit is to be fixed for three years
subject   to annual review.
  • Limit is to be calculated on the basis of
projected savings of the group.
SECURITY / DOCUMENTATION
  • Simple application
  • Resolution of the group
  • D.P.Note
  • Inter-se-agreement ( Rs.100/-)
  • Article of agreement ( Rs.50/- )
  • Letter of continuing security ( Rs.50/- )
RATE OF INTEREST As per bank’s guidelines.
MODUS OPERANDI
  • The credit extended under the Dhanlaxmi Juth Credit Card scheme would be in the nature of revolving cash credit and would provide for any number of withdrawals and repayments within the limit, keeping in view the credit limit sanctioned.
  • Such an approach would provide the much needed flexibility to the SHG card holders in chosing the appropriate time to repay their credit ( dues ) and reduce the interest burden besides, being in a position to draw on the card to meet urgent credit requirements.
ISSUANCE OF JUTH CARD PASS BOOK
  • After execution of the security documents, Juth Credit card pass book is to be issued complying with the following simultaneously.
  •  Joint photograph of the juth leaders /
authorised persons to be obtained and
pasted on SHG card and cost of group
photograph to be reimbursed by branch
  •  Particulars to be properly filled up in the
juth credit  card pass book.
  •  Group leaders signatures to be obtained
in the space specified on the juth credit
card pass book and check with their
signatures in the application form.
  •  Juth credit card pass book to be signed
by Senior / Branch Manager / authorised
officer.
  • After completion of all entries, the juth credit card pass book is to be handed over to the SHG account holders. Further, the SHG account holders would be required to produce the juth credit card pass book whenever they operate the account and each transaction in the account must be incorporated in the pass book duly authenticated by the branch official.
MAINTENANCE AND OPERATION IN THE ACCOUNT
  • Drawls would be allowed to the leaders selected by SHG. Any two of three signatories approved by the group would be eligible to operate the account as per operating instruction given by the groups.
  • The issuing branch would maintain the ledger account in respect of each juth credit card and all operations in the account shall be through the issuing branch only.
  • Before allowing drawal / debit, the branch officials must ensure that drawal amount is within the eligible limit.
OPENING OF RECURRING DEPOSIT ACCOUNT After sanction of above facility, Recurring Deposit account is to be opened for monthly savings of SHGs for -36- months. Hence, the maturity period of Recurring Deposit account and period of cash credit shall be the same.
VALIDITY OF JUTH CARD / RENEWAL
  • The juth credit card limit will be valid for 3 years subject to annual review. Drawal limit is to be reviewed every year.
  • The annual review may facilitate continuation of the facility, depending upon the performance of the group.
DISCRETIONARY LENDING POWERS As per bank’s guidelines.

OTHER TERMS AND CONDITIONS
  • Dhanlaxmi Juth Credit Card pass book should be used only by the SHG card holder and it should not be allowed to be used by any other person on their behalf nor the card be handed over to any other person.
  • The damaged Juth Credit card pass book shall be replaced by the bank on receipt of intimation from the SHG Juth credit card holder after obtaining Rs.10/- as fees.
  • In case of loss of the Juth credit card, the Juth credit card holder should immediately inform the issuing branch duly furnishing the complete details and also the circumstances under which the card was lost. The Juth credit card holders shall bear a fee of Rs.10/- for issuing a fresh card in such cases.
  • Withdrawal in the credit card, account  will be through cheques accompanied by Juth credit card and pass book.
INSURANCE
  • The members of SHGs are covered under Janta Personal Accident Insurance scheme for a sum of Rs.25,000/- per member.
  • Bank will bear 50 % of insurance premium
APPLICATION OF PRUDENTIAL NORMS An account will be treated out of order under following circumstances.
  • If account remains out of order for a period of one quarter ( 90 days ).
  • No drawal in the account should remain outstanding for more than 12 months.
REPORTING OF TRANSACTION IN LBRs
  • The credit limit sanctioned / likely to be sanctioned to the credit card holder, under Dhanlaxmi Juth Credit Card may be included in branch credit plan and be reported in LBR-1.
  • Renewal of existing limit should be computed as fresh disbursement.
  • The amount outstanding in Dhanlaxmi Juth Credit Card account may be treated as target group / short term priority sector.
  • All the debit entries ( excluding those relating to interest charges ) may be reported in LBR-2 as and when such transaction takes place.
REVIEW Annually
CLASSIFICATION OF ADVANCES Priority Sector

ADVANCE AGAINST PROPERTY – PRODUCT PROFILE

1 Purpose   For any purpose except for financial speculation of any type
2. Type of Facility Overdraft / Loan
3. Eligibility Salaried Employees / Professional, Self Employed & Others who are income tax assessee for last 3 years.
Age : Minimum  -  21 years
Maximum - 60 years
(The customer age + Overdraft / Loan  tenure should not exceed 65 years)
Minimum gross annual :  Rs 60,000/-
income
4. Limit (a) Minimum       
         (b) Maximum   
Rs. 1.00 lac
For Rural branches     : Rs.   5.00 lacsAll other branches       : Rs. 25.00 lacs(subject to income criteria, repayment capacity and advance value of the property  offered as security)
5. Income criteria Salaried Class        : 24 times of Gross                                       
                                   Monthly income
Others                     : 2.5 times of Gross     
                                  average   (last   three  years) annual  
                                  income
Income of all the joint owners of the property who are co-borrowers can be clubbed.
4.  Future income is not to be considered.
6. Repayment Capacity
  • Total deductions should not exceed 60% of the gross income ( including instalment / repayments towards proposed facility ).
  • The income of the spouse may be considered for repayment also if he / she is a co-borrower .
7. Rate of Interest 11.50 % with Monthly rest.
8. Penal Interest 2% p.a. on overdue amount.
9. Margin 50% of the market value (as per valuation report) of the property to be mortgaged.
10. Security    
  • Equitable mortgage of Un-encumbered residential or commercial property in the name of the applicant/s.
  • Loan/Overdraft against Tenanted property should not be considered except in case where the property is given on lease to PSU, Reputed Govt / Semi Govt. Enterprises, Large Corporates, Banks, Financial Institutions & Insurance companies.
3. Equitable mortgage of Plot of Land allotted / purchased from any Development Authority.
11 Third party Guarantee           Third party guarantee of an individual having adequate worth.
12 Repayment Period OVERDRAFT :Maximum 10 years.              

Methodology of the repayment would be as under:   

  • Reduction in operative limit proportionately (Minimum 10% by end of each year, synchronizing with review of the account ).
  • Interest to be recovered separately as & when applied in the account.            

 

LOAN :

  • Maximum 84 months in equal monthly instalments.(EMI).
  • Maximum moratorium – 3 months.
  • Interest to be recovered separately as & when applied in the account during moratorium period.     

For Agriculturists – to be fixed as annual / Half yearly repayment for principal and interest considering the harvesting pattern and / or other sources of income.

13.  Period of facility
  • 12 months subject to review.
  • At the time of review the limit is to be reduced as per repayment schedule
14. Processing charges and Other fee

One Time Processing charges :
0.5% of loan sanctioned with a minimum Rs .250/- & Maximum of Rs. 2000/-

15. Documentation Charges

Up to Rs.50,000/-             : Nil
Above    - Above Rs.50,000/-           : Rs.   166/-
to Rs.2 lacs      
- Above Rs.2  lacs  to          : Rs.1,105/-
Rs.5 lacs
- Above Rs.5  lacs               : Rs.1,655/- 

  1. Note : When to be charged
  2.  
  3. New sanctions :
  4.  
  5. The above is to be charged at the time of obtaining the set of documents before disbursement.

Review of account with existing limits :

No charge if no fresh / additional documents are obtained

Review with increased limits :
The above is to be charged for the entire amount of reviewed limit.

16. Valuation of Property
  • For property acquired within 5 years of sanction of loan, amount of registered sale deed may be taken as valuation.
  • In other cases, the valuation of property should be done by our Banks approved valuer or Govt. approved valuer as per extant guidelines at the time of considering the facility.
17. Age of building to be mortgaged
  • The age of building should not exceed 25 years.
  • Building more than 25 years old may be accepted as security, subject to approval of Regional Office, who will ascertain structural soundness of the building by obtaining opinion and certificate from approved engineer, about structural soundness of the building and its residual life. The residual life of the building should be at least 5 years more than the term of the loan / overdraft.
18. Co-borrower The facility can be considered to an earning member of a family against the mortgage of properties of close relatives viz. mother & son, unmarried daughter & father, husband & wife, subject to income criteria and repayment capacity.
19. Insurance

 Insurance of the Property mortgaged (cost be borne by borrower) for full value excluding:

  • Cost of Land in case of constructed property
  • The Plot of land.
20. Main Documents required to be submitted by the applicant

In case of salaried employee:

  • Income Proof such as Form No 16 along with salary certificate from the Employer.
  • For Professional / Self employed:
  • I.T Returns for past 3 years
  • In case the overdraft amount exceeds Rs. 5/-lacs copy of Latest Income Tax Assessment Order
  • For agriculturist income certificate from appropriate revenue authority like Tehsildar / SDO / BDO.
  • Original title deeds of the property offered for mortgage
  • Latest maintenance, Water Tax, Municipal Tax and any other such taxes paid receipt
  • Non encumbrance letter from Co-op Society
  • Permission to create Equitable Mortgage from society
  • Confirmation of society that Bank’s lien on society records is noted.
Last 6 months statement of accounts of Main Bank account in case main account is not with the Branch.
21. Documentation

Overdraft:

  • D.P Note
  • Letter of Continuing Security with negative lien.
  • General form of Guarantee.
  • Usual undertakings.

 

Loan:

  • D.P Note
  • General form of Guarantee
  • Letter of instalment, with acceleration clause
Usual undertakings.   
22. Availability of facility to present staff members

NO

23. Take over of mortgage loan accounts from other banks Mortgage loan taken from other banks/financial institutions can be taken over by following the extant guidelines in respect of take over of borrowal accounts
24. Legal opinion about Title Deeds
  • Legal opinion to be obtained from Bank’s approved advocate.
Actual Legal fees to be borne by the borrower. However, Branches may negotiate with the local empanelled advocates to contain the fee to a maximum of Rs. 300/- per case.
25. Other conditions
  • No penalty for pre mature payment in both the cases Overdraft / Loan.
  • As agriculturist shall not be in position to operate Overdraft account due to seasonal nature of income, they may be granted facility in the form of Demand Loan only subject to maximum of Rs. 5 lacs.
  • With a view to take care of the periodical reduction in the operative limit, following clause be added in the loan application and sanction letter -  in case of Overdraft facility:
“The Bank shall have the right to progressively reduce the limit of overdraft sanctioned hereby every year/ month from time to time during the availment of the OD limit. However, it is agreed and understood that such commitment for progressive reduction in the overdraft limit is and will be without prejudice to the rights of the Bank to call for accelerate and demand repayment of entire outstanding amount in overdraft limit at any time and from time to time”.
BARODA GUJARAT MARRIAGE LOAN 

 BARODA GUJARAT MARRIAGE LOAN 


(Retail Lending Product)

PURPOSE

  • To meet expenses of daughter’s marriage.
  • Marriage of dependent sister (a satisfactory proof of dependency is to be produced).
  • Marriage of working woman (loan to be considered in her own name).
TARGET GROUP
Parents having daughters grown up for marriage (i.e., Age of the bride and bridegroom should not be less than 18 years and 21 years respectively).

ELIGIBILITY

  • Any individual having repaying capacity from his / her income generating assets or expecting matching funds to meet the loan commitments.
  • Individuals having daughter, dependent sister grown up for marriage.
  • Female spinsters.
  • The maximum age of the borrower should not exceed 60 years.

Note : Wedding card or any other valid proof of marriage is to be obtained.

NATURE OF LOAN
Term Loan

AMOUNT OF LOAN

  • Loan amount will be fixed depending on the financial strength, status and the estimates of the marriage expenses.
  • Equals to 2 times of net annual income of the borrower subject to a maximum Rs. 2/-lacs.
MARGIN
Nil

INTEREST

  • Up to Rs. 50,000/-………………………..10.00  %  p.a.
  • Above Rs.50,000/-  up to Rs.2,00,000/-….10.50 % p.a.
SERVICE /PROCESSING CHARGES
0.2% of the loan amount – Minimum Rs. 100/-

DOCUMENTATION CHARGES

  • Up to Rs. 25,000/-                                 Nil
  • Above Rs. 25,000/-                              Rs. 100/-

REPAYMENT

  • Maximum – 60 months in Monthly / Quarterly / Half- yearly Installments
  • First Installments to start next month of disbursement.
  • Repayment under EMI option may be allowed.

GUARANTOR

  • In case loan is sanctioned to working woman for her own marriage, personal guarantee of earning father/ mother/ brother is to be obtained.
  • In case collateral securities are in third party’s name his personal guarantee is to be obtained.

SECURITY

  • D P Note
  • Letter of installment with acceleration clause.
  • Collateral security should be 100% of the loan amount i.e. Mortgage of land and buildings, pledge of Govt securities/
    public sectors bonds / units UTI, NSC, KVP,  Bank’s own deposits in the name of parents or any other third party .
  • In case of existing borrowers who have taken other loans where mortgage is created as principal security, extension of mortgage as long as amount of this loan is covered within the value of  mortgaged property. e.g. Mr. A  who has availed a housing loan of Rs. 8.5/- lacs against mortgage of house valuing Rs. 12/- lacs. As the housing loan attracts margin of 15 % the value up to Rs. 10/- lacs is charged to
    housing loan, and therefore against the surplus value of Rs. 2/- lacs, he can avail loan under this Scheme against collateral security
    of extension of mortgage on housing property.

Note : In case of these securities, Bank’s extant guidelines for financing against such securities to be adhered to.

ELIGIBILITY TO STAFF MEMBERS
Staff Manager are not eligible.

SANCTIONING AUTHORITY
Branch Manager under his discretionary lending power.

OTHER CONDITIONS

  • Documents to be signed by father and or mother of the bride.
  • If collateral security offered is in the name of third party, then third party may be made guarantor in the loan account.
  • Marriage should be legally valid.
  • Wedding card or any other valid proof of marriage should be obtained.
  • Existing customers having good deposit or credit relationship may be given waiver to the extent of    50 % in documentation charges
CONSUMER DURABLES AND HOME APPLIANCES
 SCHEME FOR GRANT OF LOAN FOR PURCHASE OF TWO WHEELERS,

CONSUMER DURABLES AND HOME APPLIANCES

(T.V.REFRIGERATORS,CD/VCD, WASHING MACHINE,FLOUR MILL, PERSONAL COMPUTER, ETC) TO INDIVIDUALS<
   

TYPE OF FACILITY

 

ELIGIBILITY

  1. All Salaried class people.
  2. Professionals, Self employed and Retail Traders.

LIMIT

  1. Two Wheelers
    - 90% of cost of vehicle (excluding RTO tax insurance and accessories ) of 8 times of monthly Gross Salary or Rs. 50,000/- whichever is less.
  2. Home appliances:
    75% of cost of article or 6 times of monthly  Gross Salary or Rs. 50,000/- whichever is less.

MARGIN

  1. Two Wheelers
    10% of cost of vehicle
  2. Home appliances:
    25% of cost of article.

INTEREST

  • 12 % with monthly rest.
  • 1 % concession is  to be given for Borrower offering 100% liquid securities like FDR, lien on RD A/C NSC,KVP LIC policies.
SERVICE CHARGE (ONCE) Service charge is to be levied as per existing guideline

REPAYMENT

 

  1. Two Wheelers
    60 Equated Monthly Installments
  2. Home appliances:
    48 monthly instalments

DOCUMENTS

  • D.P.Note
  • Loan agreement letter (stamped).
  • Letter of guarantee – 2 guarantors for all
  • Letter of introduction.
  • Letter of instalment
  • Hypothecation of vehicle
  • Direct payment letter
  • Post dated cheques 60/48 as the case may be..
  • A stamped undertaking from employee as per prescribed format.

OTHER CONDITIONS

  • Total deductions including proposed loan installment should not be more than 60% of monthly  gross salary income.
  • The latest salary certificate duly signed by the competent
  • authority to be obtained as per bank’s proforma.
  • In case of professionals, self employed persons and retail traders the applicant should have adequate source of income to repay bank installments.
  • A declaration from the borrowers about the vehicle under pledge/hypothecation to the bank as security for repayment of the abovesaid term loan to be filled in after purchase of vehicle and submission of bills- Annexure-A.
  • Two blank T.O./T.T.O. forms signed by the borrowers (Form No. 29/30)
  • Two blank form No. 26 to be signed by the borrower / owner of the vehicle, required in case of lost/misplaced R.C. book.
  • Form No. 34 to be signed by borrower/owner of the vehicle, for entering Hypothecation of bank, with R.T.O., in case if party has not entered hypothecation of bank.
  • Comprehensive Insurance policy to be assigned in favour of our Bank.

SANCTIONING AUTHORITY

  • As per bank’s guidelines
Classification of Advances Non Priority Sector.
FINANCING NEW AND SECOND HAND CAR/JEEP
 SCHEME FOR

FINANCING NEW AND SECOND HAND CAR/JEEP

ETC

TO SALARIED CLASS PEOPLE/ PROFESSIONALS / MEDICAL PRACTITIONERS / RETAIL TRADERS

OBJECTIVE

To tap the good clientele for financing new & second hand vehicles as demand under this sector is increasing day by day.

ELIGIBILITY

Salaried class people / Professionals/ Medical practitioners / retail traders / self employed persons / farmers.

LIMIT

 

  • 85% of on road cost (including RTO tax and insurance premium but excluding accessories)
  • 75% of valuation cost as per valuation report of General Insurance Company valuation chart for 2 years old vehicle.   
  • 65% of valuation cost as per valuation report of General Insurance Company valuation chart for more than 3 years old vehicle but not older than 4 years. 

MARGIN

  •  15% for new vehicle
  • 25% for 2 to 3 years old vehicle.
  • 35% for more than 3 years old vehicle.

RATE OF INTEREST

Upto   Rs. 50,000/-                               12.00 %
Above Rs. 50,0001 to Rs. 2/- lacs         12.50 %
Above Rs. 2/- lacs                                13.00 %

SERVICE CHARGE (ONCE)

Service charge is to be levied as per  Bank’s existing guidelines.

REPAYMENT

  • 84 Equated Monthly Installments for new vehicle.
  • 72 Equated Monthly installments for 2 years old vehicle.
  • 60 Equated Monthly installments for more than 3 years old vehicle.

 DOCUMENTS

  • D.P.Note
  • Loan agreement letter
  • General form of guarantee to be signed by two guarantors.
  • Letter of installment.
  • Letter of introduction
  • Post Dated Cheques
  • Letter of Hypothecation of vehicle.
  • Blank T.O./T.T.O. form. (Form No. 29/30) duly signed by applicant

OTHER CONDITIONS

  • Irrevocable power of attorney duly signed by applicant in presence of Notary or Executive Magistrate to be obtained.
  • Comprehensive Insurance policy in favour of bank.
  • Registration of H.P. of vehicle and bank’s lien in R.C.Book and Insurance policy.
  • Form No. 26 duly signed by the owner of the vehicle, required in case of lost/misplaced R.C.book
  • Form No. 34 duly signed by the owner for entering H.P. of bank with RTO in case if party is not entering the HP of bank.
  • Branch to ensure that the detailed terms and conditions of sanction are advised to the applicant and acceptance thereof in writing is obtained and kept on record.
  • Disbursement of the term loan is made directly to the dealer.
  • Original bills, cheque receipts are to be obtained, in case of new vehicle
  • “Hypothecation with Baroda Gujarat Gramin Bank ________branch” is to be written on vehicle
  • Branch to ensure that
  • proper end use of bank’s fund.
  • to start the process review of the facility two months before the due date of review.
  • to report adverse features if any, observed in the conduct of the account to Regional office  immediately and initiate corrective measures timely.
  • branch to charge penal interest at the applicable rate from time to time as per bank’s norms in case of (I) irregularities in any borrowal account of the party with the bank (ii) default in observance of any of stipulated terms and conditions of sanction (iii) Non payment of any installment of term loan on due date wherever applicable.
  • service charge is to be levied as per bank’s guidelines.
  • branch to follow up and monitor the conduct of account on monthly basis as per guidelines.

SANCTIONING AUTHORITY

  • As per bank’s guidelines

CLASSIFICATION OF ADVANCES

  • Non-Priority Sector.
FINANCING OF MANGO PLANTATION

Scheme for financing of Mango Plantation

TYPE OF FACILITY

Scheme for financing of Mango Plantation

BENEFICIARY

All farmers having Irrigation facility.

PURPOSE

Considering high potential of area, to boost the Mango crop production.

LIMIT

Rs. 52,600/- per Hector

MARGIN

10 %

INTEREST

As per Bank’s guidelines for Agriculture Advances from time to time.

REPAYMENT

 14 Years, First five years is grace period, Sixth and Seventh year only interest to be recovered and in last seven years principal and interest to be recovered.

SECURITY/ DOCUMENTS

  1. D.P.Note
  2. Term Loan agreement.
  3. Letter of instalment
  4. Two guarantors of good means
  5. Lien on agriculture land.

SERVICE CHARGE

As per Bank's guidelines.

REMARKS

  1. The advances are to be treated under priority sector advances.
  2. Branch to ensure repaying capacity of the applicant.  
SCHEME FOR FINANCING LPG CONNECTION IN RURAL AREA
Scheme for financing LPG connection in rural area

TYPE OF FACILITY

Scheme for financing LPG connection in rural area.

BENEFICIARY

All individuals desirous to have  L P G  connection in rural and semi urban are.

PURPOSE

For acquition of   L P G   connection.

LIMIT

Maximum  Rs. 3,000/-  or 90 % of selling price of the L P G connection cost whichever is less.

MARGIN

10 % of selling price of  L P G  connection.

INTEREST

12 % with Monthly rest.

REPAYMENT

3 to 5 years depending upon type of beneficiary assisted and income generation.

SECURITY/ DOCUMENTS

  1. D.P.Note
  2. Term Loan agreement.
  3. Letter of instalment

SERVICE CHARGE

As per Bank's guidelines.

REMARKS

  1. The advances are to be treated under priority sector advances.
  2. Branch to ensure repaying capacity of the applicant.  
BARODA GUJARAT LOANS TO DOCTORS
 

Baroda Gujarat Loans to Doctors

 

Nature of facility :Demand / Term Loan and /or Overdraft

Purpose:

  • Development of clinic / Clinic-cum-residence, Nursing Home, Pathological Laboratory.
  • Purchase of medical / diagnostic equipments.
  • Setting up of operation theatre.
  • Purchase of office equipments viz. computers, fax, air-conditioners and furniture etc.
  • Purchase of car, ambulance, etc.
  • Expansion/ renovation/ modernization of existing premises/ Clinic/Nursing Home.

Working Capital requirement including stock of medicines.

Limit:

Minimum: Rs.50,000/-
Maximum:

  • Rural/ Semi-Urban : Rs. 15/- lacs (sub limit for W/C Rs.1/- lac).
  • Urban / Metro : Rs. 50/- lacs (sub limit for W/C Rs. 3/- lac).

For a loan amount of Rs. 5/- lacs and above, the doctor/ unit should have been established for a minimum period of 3 years. However, in deserving cases, Regional Authority can relax this condition.

Eligibility :

Individuals, Proprietorship/ Partnership firms, Private Limited companies engaged in providing medical / pathological/ diagnostic services to the society.

Applicants/Promoters should have recognized qualification in any branch of medical science like MBBS / BAMS / BDS or any degree/ course in physiotherapy/ radiology etc.

In case of Private Limited Company, the object clause should be verified for having the objective of providing medical services to the community.

Rate of Interest :    

  • Up to Rs. 35/- lacs …9.50% p.a. with monthly rest.
  • Above Rs. 35/- lacs : 10.50% p.a. with monthly rest.

The rate of interest shall be determined by aggregate limit sanctioned under the product and only one rate shall be applicable for an account.

Penal Interest : 2% p.a. on overdue amount for delayed period.

Margin :

  • Loans up to Rs. 5/- lacs (where no collateral is stipulated) : 25%.
  • All other cases: 15% of the cost of project/ equipment.

Working Capital :    Nil

Assessment of Credit Limit :

Development of clinic / Clinic-cum-residence, Nursing Home, Pathological Laboratory /Purchase of medical / diagnostic equipments: Need based finance as per the project, subject to economic viability of the same and generation of sufficient income to service the repayment obligations.

Working Capital: 10% of projected gross income.

While assessing credit requirement, the repaying capacity of the prospective borrower based on expected income would be considered.

Security :  

Upto Rs. 5/- lacs:  Nil.

  • Hypothecation of assets created out of the loan.
  • Guarantee of a third party having adequate means i.e. having minimum net worth equal to loan amount, shall be obtained.

Above Rs. 5/- lacs:

  • Tangible collateral Securities in the form of mortgage of land (excluding agricultural land) and building, AND/ OR
  • Pledge of NSCs, Govt. Bonds, Bank’s FDR /assignment of life insurance policies etc.
  • Property to be mortgaged, NSC’s Government Bonds, our Bank’s Term Deposits may be in the personal name of either Borrower, Proprietor, Partner, Director or their Close relatives ( viz. Spouse, parents, brother, sister, son, daughter) who should stand as guarantor / co-borrower.
  • Life Insurance Policies standing in the name of the borrower/ proprietor/ partner/ director only.
  • Branch to obtain a valuation report on the property to be mortgaged given by Bank / Govt. approved valuer.
  • The valuation is to be done once in three years.

Security Margin :

  • 50% in case of immovable property. (The assets created out of the bank credit may also be considered for the security.
  • 15% on value of NSCs / KVPs / Govt. Bonds / RBI Relief Bonds / surrender value of LIC policies etc.
  • 10% on Bank’s FDRs.

Period :

Overdraft  (for Working Capital)

  • 12 months subject to annual review.

(For renewal of the account, declaration of annual income shall be obtained and kept on record. Stock statement shall be obtained once a year as of last of February every year.).

Demand Loan / Term Loan

  • 60 months including moratorium period of 6 months.
  • The amount shall be repayable in EMI commencing after one month of completion of project / maximum moratorium period of 6 months.
  • Interest debited in the account during moratorium period shall be recovered as and when debited in the account.
  • DSCR of 1.25 may be accepted for ensuring repayment capacity in case of demand / term loan.

Documents:

In case of Term / Demand Loan:

  1. D.P.Note(as per the constitution of the borrower).
  2. Letter of instalment with acceleration clause.
  3. Hypothecation of assets i.e. furniture / office equipment / medical / pathological equipment’s etc. purchased out of bank loan.
  4. Hypothecation of vehicle in case of finance for Ambulance / any other vehicle.
  5. Authority to make payment directly to supplier, wherever applicable.
  6. Blank TTO Form( in case of finance for vehicle)

In case of Overdraft:

  • D.P.Note (as per constitution of borrower).
  • Letter of continuing security

General:

  • Draft letter of Undertaking.
  • Pledge/ assignment / mortgage (whichever is applicable) of collateral security.
  • General form of Guarantee, wherever applicable.
  • Undertaking to deal exclusively with our Bank.
  • Other documents as per constitution of the borrower and terms and conditions of the sanction.

Disbursement of loan for setting up of clinic, purchase of vehicle/ equipment/ furniture etc.

  • Outright purchase of premises for clinic/ nursing home, ready for possession - Disbursement in one installment directly to the seller.
  • Construction of clinic/house/laboratory/drug store/nursing home etc. - in three to four stages after physical verification depending upon the progress of construction.
  • Payment can be made either to the builder directly or to the borrower subject to verification of bills/money receipts/ invoices etc. or certificate issued by approved Valuer/ Architect certifying the progress of the work and the estimated expenditure having incurred therefor, as the case may be.
  • For vehicle/equipment/machineries - directly to suppliers, wherever possible

Processing Charges

1.5% of the loan amount with a maximum of Rs.2000/-

Documentation charges

(a) Up to Rs.50,000/-                                                   NIL
(b) Above Rs.50000/- up to Rs.2 lacs                             Rs.100/-
(c) Above Rs.2 lacs up to Rs.5 lacs                                        Rs.350/-
(d) Above Rs.5 lacs up to Rs.20 lacs                              Rs.1000/-
(e) Above Rs.20 lacs up to Rs.25 lacs                             Rs.1500/-
(f) Above Rs.25 lacs                                                    Rs.3000/-

(In addition to the above-prescribed processing and documentation charges, Service Tax shall be recovered as per rules.)

Classification of Advances under priority sector

The advances under the product may be classified and reported under Priority Sector as per norms/ guidelines of Bank/ Reserve Bank of India from time to time.

Other Conditions

  1. Borrowers to route the income through their Overdraft/ Current A/c ( in case of loan) with the branch.
  2. If Government Bonds/National Saving Certificates/ Life Insurance Policies / Bank Deposits are offered as security, bank’s extant guidelines/norms to be followed for noting/registering the lien / assignment.
  3. Borrowers will not be considered for financial assistance both under this scheme as well as under our usual scheme of financing Professional. & Self-Employed persons.
  4. However, existing loan accounts of Self Employed & Professional persons who are eligible under this scheme can have the facilities transferred to this scheme.
  5. Inspection of securities to be carried out once in a year and inspection report is to be kept on record.
  6. Pre-sanction inspection to be conducted and report to be kept on record.
  7. Obtaining of financial statements i.e. Balance Sheet and Profit & Loss account is dispensed with. However, to determine eligible loan amount, declarations about annual sales / income supported by Returns / Assessment of Sales Tax / Service tax / Income tax etc. be obtained and kept on record.
  8. Where security is in the form of our Bank’s FDR, the same should be appropriated in case of default in servicing interest for one quarter and account getting classified as NPA.
  9. Branch to endeavor to display bank’s name as financier from publicity angle.

Insurance

  • Vehicles/ Property mortgaged should be got insured as per bank’s norms.
  • Obtaining Insurance against the immovable assets created out of bank loan shall also be a condition for sanction of the facility.

However, branches may counsel their borrowers to have their machinery/ equipment / inventory insured at their cost, in their own interest.

Other Provisions

  • Request of Doctors for Car and clean loans may be considered under our existing products i.e. Baroda Car Loan, Baroda Personal Loan, as per the terms and condition of the products.
A doctor may avail more than one advance ( i.e. car loan, clean loan) including loan under this product, however, while considering car / clean loan it should be ensured that total deductions including the proposed EMI should not exceed 70% of gross monthly income.
 
 
SULABH SUVIDHA SCHEME FOR SHG MEMBERS

SULABH SUVIDHA SCHEME ( SSS ) FOR SHG MEMBERS

 

 

1.  PURPOSE
Grant of Loan for Construction of Bathrooms and Toliets.

2.   ELIGIBILITY
Members of Bank credit Linked SHGs(Under DJCC or other)  which are regular in  Repayment.

3.   NATURE OF FACILITY
Term Loan.

4.  LOAN LIMIT
Rs.20,000

5.  MARGIN
- NIL –

6. RATE OF INTEREST
10 % with Monthly rest.

7. REPAYMENT PERIOD
12- to -24 – Months.

8.LOAN DISBURSEMENT

20 %  of loan amount is to be disbursed first to enable the borrower to start the work of constructions of Bathroom and Toliet.

Thereafter, Loan is to be disbursed in cash on production of necessary Bills / declaration after verification of progress at each stage. Branch has to verify end use of loan granted.

9. SECURITIES

(i)  D.P.Note.
(ii)  Unstamped Loan Agreement letter.
(iii)  Letter of Introduction ( to be signed by Leader of SHGs)
(iv) Letter of Instalment.
(v)  Documents are to be executed by spouse ( husband & wife)/  owner  of the house.

10.AUTHORITY FOR SANCTION  
Branch Manager

GRANT OF OVERDRAFT TO SALARIED CLASS PEOPLE 

SCHEME FOR GRANT OF OVERDRAFT TO SALARIED CLASS PEOPLE 

 

1.PURPOSE

To accomodate salaried person due to delay in receipt of salary.

2. NATURE OF FACILITY

Overdraft against salary to be received for the future month.

3. ELIGIBILITY

High School and Primary  teachers and government employees whose salary is being paid through branch of our bank.

4. LIMIT

Average net salary of 3 months subject to maximum of Rs.10,000/-.

5. RATE OF INTEREST

12 % with Monthly rest.

6. REPAYMENT

It will be recovered from the amount of salary to be credited subsequent to grant of overdraft.

7. SECURITIES

(i)         D.P.Note.
(ii)        Loan agreement letter.
(iii)       Letter of introduction.
(iv)       Letter of continuing security.
(v)        Authority letter to credit monthly salary in overdraft loan account( unstamped )
(vi)       -1- post dated cheque.

8     OTHER CONDITIONS

  -    Overdraft is to be allowed once in a month against salary to be received for the next /future month.

  -    Branch to open a new overdraft loan account and salary is to be credited in overdraft loan account.

9. SANCTIONING AUTHORITY

Branch Manager

ADVANCE AGAINST PROPERTY

ADVANCE AGAINST PROPERTY

 

1

Purpose  

For any purpose except for financial speculation of any type

2.

Type of Facility

Overdraft / Loan

3.

Eligibility

Salaried Employees / Professional, Self Employed & Others who are income tax assessee for last 3 years.
Age : Minimum  -  21 years
Maximum - 60 years
(The customer age + Overdraft / Loan  tenure should not exceed 65 years)
Minimum gross annual :  Rs 60,000/-
income

4.

Limit (a) Minimum       
         (b) Maximum   

Rs. 1.00 lac
For Rural branches     : Rs.   5.00 lacs

All other branches       : Rs. 25.00 lacs(subject to income criteria, repayment capacity and advance value of the property  offered as security)

5.

Income criteria

Salaried Class        : 24 times of Gross                                       
                                   Monthly income
Others                     : 2.5 times of Gross     
                                  Average   (last   three  years) annual  
                                  Income
Income of all the joint owners of the property who are co-borrowers can be clubbed.
4.  Future income is not to be considered.

6.

Repayment Capacity
  • Total deductions should not exceed 60% of the gross income ( including instalment / repayments towards proposed facility ).
  • The income of the spouse may be considered for repayment also if he / she is a co-borrower .

7.

Rate of Interest

11.50 % with Monthly rest.

8.

Penal Interest

2% p.a. on overdue amount.

9.

Margin

50% of the market value (as per valuation report) of the property to be mortgaged.

10.

Security    
  • Equitable mortgage of Un-encumbered residential or commercial property in the name of the applicant/s.
  • Loan/Overdraft against Tenanted property should not be considered except in case where the property is given on lease to PSU, Reputed Govt / Semi Govt. Enterprises, Large Corporates, Banks, Financial Institutions & Insurance companies.

3. Equitable mortgage of Plot of Land allotted / purchased from any Development Authority.



11

Third party Guarantee          

Third party guarantee of an individual having adequate worth.

15.
12.                         RepaymentPeriod 

OVERDRAFT :Maximum 10 years.           

Methodology of the repayment would be as under:  

  • Reduction in operative limit proportionately (Minimum 10% by end of each year, synchronizing with review of the account ).
  • Interest to be recovered separately as & when applied in the account.            
 LOAN :
  • Maximum 84 months in equal monthly instalments.(EMI).
  • Maximum moratorium – 3 months.
  • Interest to be recovered separately as & when applied in the account during moratorium period.     
For Agriculturists – to be fixed as annual / Half yearly repayment for principal and interest considering the harvesting pattern and / or other sources of income.
13. Period of facility
  • 12 months subject to review.
  • At the time of review the limit is to be reduced as per repayment schedule
14.Processing charges andOther fee  One Time Processing charges :
0.5% of loan sanctioned with a minimum Rs .250/- & Maximum of Rs. 2000/-

15. Documentation Charges
Nil.NN   - Up to Rs.50,000/-             : Nil
Above    - Above Rs.50,000/-           : Rs.   166/-
to Rs.2 lacs      
- Above Rs.2  lacs  to          : Rs.1,105/-
Rs.5 lacs
- Above Rs.5  lacs               : Rs.1,655/- 
  • Note : When to be charged
  •  
  • New sanctions :
  •  
  • The above is to be charged at the time of obtaining the set of documents before disbursement.
Review of account with existing limits :No charge if no fresh / additional documents are obtainedReview with increased limits :The above is to be charged for the entire amount of reviewed limit.
16.Valuation of Property
  • For property acquired within 5 years of sanction of loan, amount of registered sale deed may be taken as valuation.
  • In other cases, the valuation of property should be done by our Banks approved valuer or Govt. approved valuer as per extant guidelines at the time of considering the facility.
17.Age of building to be mortgaged
  • The age of building should not exceed 25 years.
  • Building more than 25 years old may be accepted as security, subject to approval of Regional Office, who will ascertain structural soundness of the building by obtaining opinion and certificate from approved engineer, about structural soundness of the building and its residual life. The residual life of the building should be at least 5 years more than the term of the loan / overdraft.
18.Co-borrower The facility can be considered to an earning member of a family against the mortgage of properties of close relatives viz. mother & son, unmarried daughter & father, husband & wife, subject to income criteria and repayment capacity.
19.Insurance                 Insurance of the Property mortgaged (cost be borne by borrower) for full value excluding:
  • Cost of Land in case of constructed property
  • The Plot of land.
20.Main Documents required to be submitted by the applicant In case of salaried employee:
  • Income Proof such as Form No 16 along with salary certificate from the Employer.
  • For Professional / Self employed:
  • I.T Returns for past 3 years
  • In case the overdraft amount exceeds Rs. 5/-lacs copy of Latest Income Tax Assessment Order
  • For agriculturist income certificate from appropriate revenue authority like Tehsildar / SDO / BDO.
  • Original title deeds of the property offered for mortgage
  • Latest maintenance, Water Tax, Municipal Tax and any other such taxes paid receipt
  • Non encumbrance letter from Co-op Society
  • Permission to create Equitable Mortgage from society
  • Confirmation of society that Bank’s lien on society records is noted.
  • Last 6 months statement of accounts of Main Bank account in case main account is not with the Branch.
21.Documentation  Overdraft:
  • D.P Note
  • Letter of Continuing Security with negative lien.
  • General form of Guarantee.
  • Usual undertakings.
Loan:
  • D.P Note
  • General form of Guarantee
  • Letter of instalment, with acceleration clause
  • Usual undertakings.                              
22.Availability of facility to present staff members NO
23.Take over of mortgage loan accounts from other banks Mortgage loan taken from other banks/financial institutions can be taken over by following the extant guidelines in respect of take over of borrowal accounts
24. Legal opinion about Title Deeds
  • Legal opinion to be obtained from Bank’s approved advocate.
  • Actual Legal fees to be borne by the borrower. However, Branches may negotiate with the local empanelled advocates to contain the fee to a maximum of Rs. 300/- per case.

25. Other conditions
  • No penalty for pre mature payment in both the cases Overdraft / Loan.
  • As agriculturist shall not be in position to operate Overdraft account due to seasonal nature of income, they may be granted facility in the form of Demand Loan only subject to maximum of Rs. 5 lacs.
  • With a view to take care of the periodical reduction in the operative limit, following clause be added in the loan application and sanction letter -  in case of Overdraft facility:
“The Bank shall have the right to progressively reduce the limit of overdraft sanctioned hereby every year/ month from time to time during the availment of the OD limit. However, it is agreed and understood that such commitment for progressive reduction in the overdraft limit is and will be without prejudice to the rights of the Bank to call for accelerate and demand repayment of entire outstanding amount in overdraft limit at any time and from time to time”.
SCHEME FOR SETTING UP OF AGRI-CLINICS / AGRI-BUSINESS CENTRES BY AGRICULTURE GRADUATES

Scheme for setting up of Agri-clinics / Agri-business Centres by Agriculture Graduates – Broad Guidelines and Terms and Conditions

Objectives :

  • To supplement the efforts of government extension system
  • To make available supplementary sources of input supply and services to needy farmers
  • To provide gainful employment to agriculture graduates in new emerging areas in agricultural sector.

 

Concept / Definition : 

  • Agri-clinics :

Agri-clinics are envisaged to provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection from pests & diseases, market trends and prices of various crops in the markets and also clinical services for animal health etc. which would enhance productivity of crops / animals.

  • Agri-business Centres :

Agri-business Centres are envisaged to provide input supply, farm equipments on hire and other services.

In order to enhance viability of the ventures, Agriculture Graduates may also take up in agriculture and allied areas alongwith the Agriclinics / Agribusiness Centres.

Eligibility : 

The scheme is open to Agriculture Graduates / Graduates in subjects allied to agriculture like horticulture, animal husbandry, forestry, dairy, veterinary, poultry farming, pisciculture and other allied activities.

  • Project activities :

An illustrative list is given in the Appendix.

  • Project cost & coverage :

The project  may be taken up by Agriculture Graduates either individually or on joint / group basis. The outer ceiling for the cost of project by individual would be Rs.10.00 lacs and for the project by group would be Rs.50.00 lacs. The group may normally be of 5, of which one could be a management graduate with qualification or experience in business development and management. However, for availing of refinance under ARF, the outer limit of the project cost would be Rs.25.00 lacs subject to ceiling of  Rs.15.00 lacs towards refinance availment. Projects with outlay above Rs.25.00 lacs may be submitted to NABARD for prior sanction.

  • Margin Money ( Down payment ) :

(a)       Upto    Rs.5.00 lacs              : Nil
(b)       Above  Rs.5.00 lacs             : 15.00 %

(7)       Rate of interest :

Upto Rs. 50,000/-                                          9.00 %
Above Rs. 50,000/- to Rs. 2/- lacs              9.25 %
Above Rs. 2/- lacs                                         9.50 %

  •       Security :

Upto Rs.5.00 lacs   :                       Above Rs.5.00 lacs

  • D.P.Note                                      D.P.Note
  • Loan agreement letter                Loan agreement letter
  • HP of assets / goods                  HP of assets / goods
  • Third party guarantee                 Mortgage of land with Sub-   
                                                      Registrar   or Third party guarantee       
  •      Repayment :

The period of loan will vary between 5 years to 10 yearbvhs depending on the activity. The repayment period may include a grace period of a maximum of 2 years.

  • Selection of borrowers :

The selection of borrowers and location of the projects may be done by the branches  in consultation with Agricultural Universities / KVKs etc. in their area of operations, if necessary.

11        Margin Money assistance from ‘ Soft Loan Assistance Fund ‘ of NABARD :

A maximum of 50 % of the margin prescribed by banks, to meet the shortfall in borrower’s contribution, if any, where the bank is satisfied that the prospective borrower is unable to meet the margin money requirements, will be given by NABARD. Such assistance / loans to banks will be without any interest but the banks will  charge a service charges of 3 % p.a. from the beneficiary.

  • General :

All other terms and conditions, banking procedure and lending norms as are normally applicable to project lending and schematic refinance mutatis mutandis will also be applicable to financing of agriclinics and agribusiness centres.

SCHEME FOR FINANCING TRACTORS, TRAILORS AND OTHER AGRICULTURE MACHINERY UNDER FARM MEHCNISATION
 

SCHEME FOR FINANCING TRACTORS, TRAILORS AND OTHER AGRICULTURE MACHINERY UNDER FARM MEHCNISATION

Land Holding Criteria

4 acres of irrigated land and above subject to following conditions:
. Land should be perennially irrigated land of 4 acres.
. The prospective borrower/ farmer should cultivate high value commercial cash crops.
. The prospective borrower /farmer should possess progressive outlook in adoption of improved farm practice and modern agriculture technologies.
. Income generation should be sufficient to serve loan and interest of  total loans availed.
. Finance for tractor to farmers with land holding between 4 and 6 acres irrigated land will be considered for tractors with Horse Power upto 35 H.P.

Cash Margin

10%

Loan period

9 years

Repayment schedule

18 Half Yearly or 9 yearly installments commencing after one harvesting season.

Rate of Interest

9.25 % p.a.

Sanctioning authority / lending powers

As per Bank’s guidelines

Inspection charge

As per bank’s existing guidelines

 DOCUMENTS

  • D.P.Note
  • Loan agreement letter
  • General form of guarantee for the loan limit above Rs. 50,000/-.
  • Letter of installment.
  • Letter of introduction
  • Letter of hypothecation of vehicle.
  • Direct payment letter.
  • Hypothecation of agricultural machinery.
  • Blank T.O./T.T.O. form. Signed by applicant
  • Letter of undertaking for utilization of bank’s funds
  • Post dated cheques
  • Comprehensive Insurance policy of tractors, trailors etc

OTHER TERMS AND CONDITIONS

  • Irrevocable power of attorney duly signed by applicant in presence of Notary or Executive Magistrate to be obtained.
  • Comprehensive Insurance policy in favour of bank..
  • Registration of H.P. of vehicle with RTO and bank’s lien in  R. C..book.
  • Form No. 26 duly signed by the owner of the vehicle, required in case of lost / misplaced R.C.book
  • Form No. 34 duly signed by the owner for entering bank’s lien in R.C. Book with RTO in case if party is not entering the HP of bank..
  • Branch to ensure that the detailed terms and conditions of sanction are advised to the applicant and acceptance thereof in writing is obtained and kept on record.
  • Disbursement of the term loan is to be made directly to the dealers.
  • Original bills, cheque receipts are to be obtained.
  • Branch to ensure that
  • there is proper end use of bank’s fund.
  • to start the process for review of the facility two months before the due date of review.
  • to report adverse features if any, observed in the conduct of the account to Regional office immediately and initiate corrective measures timely.
  • branch to charge penal interest at the applicable rate from time to time as per bank’s norms in case of
  • irregularities in any borrowal account of the party with the bank
  • default in observance of any of stipulated terms and conditions of sanction
  • non payment of any installment of term loan on due date wherever applicable.
  • Branch to follow up and monitor the conduct of account on monthly basis.
  • The margin money should invariably be deposited in the loan account of the applicant  and cheque /draft /banker’s cheque for the total amount should be sent to the dealer.

Papers to be obtained

  • Application form in prescribed format .
  • Land revenue records (8-A, 7-12 abstract, Hak patrak-6, Milkat patrak, Akarani Patrak, Land holding certificate, certificate of land irrigation etc.)
  • Income certificate
  • Residential proof
  • No due certificate of other financial institutions
  • Title clearance certificate of approved advocate of the bank
  • Land revenue records and milkat patrak of 2 guaranters.
  • Quotation of agriculture machinery and equipments of authorized dealer.
  • Photograph of applicant/s, guarantors duly attested by village level officials.

Processing at branch level

  • Pre-sanction inspection must be done as per guidelines issued from time to time and report in prescribed format is to be kept with application.
  • Apprisal – cum- sanction note is to be prepared as per prescribed format
  • Means report of applicant/ s and guarantors are to be obtained as per prescribed  form
  • Economics viability statements are to be prepared and kept with application as per attached specimen
BARODA GUJARAT KISAN CREDIT CARD SCHEME (BGKCC)

BARODA GUJARAT KISAN CREDIT CARD SCHEME (BGKCC)

Introduction

The Hon’ble Union Finance Minister in his budget speech for the year 1998-99 had desired that the banks should issue Kisan Credit Cards (KCC) to farmers on the basis of their land holdings so that the farmers may use them to readily purchase agricultural inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs and that NABARD should prepare a model scheme for uniform adoption by banks.

Pursuant to the above direction of the Hon’ble Union Finance Minister, NABARD formulated a model scheme which provides broad guidelines to the banks for operationalising the KCC scheme and implementing banks have been given the direction to adopt the same with modification to suit location specific requirements.

Accordingly our erstwhile RRBs have formulated a scheme of  Kisan Credit Card (KCC) and advised the same highlighting its salient features to the branches vide circulars of respective erstwhile RRBs. Subsequently certain modifications were made and conveyed.

Based on the experience gained by us in the successful implementation of the above scheme for more than five years and in accordance with the recommendation of the IBA Working Group, Dr.Vyas Committee on Rural Credit, NABARD and RBI, the scheme has been further modified in order to enhance the credit flow to agriculture.Now this scheme will be known as “BARODA GUJARAT KISAN CREDIT CARD SCHEME”

We give below the revised version of the scheme.

1. OBJECTIVES :

  • Baroda Gujarat Kisan Credit Card (BGKCC) Scheme aims at providing adequate and timely credit for the comprehensive credit requirements of farmers under single window with flexible and simplified procedures, adopting wholesome approach including the short term credit needs and a reasonable component for consumption needs of the farmer borrowers which includes their crop cultivation expenses including purchase of inputs in flexible and cost effective manner and also to meet expenses on farm maintenance, consumption needs, non-farm activity as also medium term and long term investment credit needs.
  • Revised BGKCC Scheme is an extension of Composite Cash Credit System (CCS) with facility of cheque books for purchase of seeds, fertilizers and pesticides etc. from the traders / dealers of Agriculture inputs as also purchase of farm equipments / machinery like oil engine, electric motor pumpset, sprinkler / drip irrigation equipments, pipelines, power tillers, and tractor etc. as also milch animals and other live stock, construction of farm structures, purchase of vehicles for transport of farm produce etc.

2. ELIGIBILITY :

All agriculturists with good track record of repayment who are eligible for sanction of credit limit of Rs. 1000/- and above irrespective of their period of dealings with our branch or a fresh applicant having good reputation / report.

Recorded / registered share croppers and tenant farmers who are cultivating crops for a period not less than five years in order to meet the production credit needs are also eligible. However the individual tenant farmers / share croppers cultivating land on oral lease basis who are resident of the village atleast for a period of three years continuously and cultivating lands and raising crops for a reasonably long period but not less than three years could also be issued BGKCC with a farm credit limit upto Rs. 10000/- in general and in exceptional cases not exceeding Rs. 25000/-.This is the line of our sponsor bank circular no BCC:BR:95:36 dtd.04/02/2003. 

3. APPLICATION FORM FOR KISAN CREDIT CARD

Alongwith the regular agricultural loan application form, application for Kisan Credit Card should also be obtained from the borrower as per Annexure - I.

4. FIXATION OF CREDIT LIMIT

Baroda Gujarat Kisan Credit Card will consist of Production Line of Credit as well as Investment Line of Credit.

4.1       Production Line of Credit :

Following requirements of farmers are to be taken into account while fixing Production
Line of Credit under BGKCC scheme :

  • Extending production loans for raising various crops based on scale of finance.
  • Other short term requirements like maintenance of tractor/farm implements, allied activities like dairy, poultry, annual repairs, fuel, cost of feed, etc. to the extent of 15% of the crop production expenses limit.
  • The consumption needs to the extent of 15% / 25% / 35% of the Crop Production expenses limit, depending upon the category of borrower subject to a maximum of Rs.50,000/- per card.
  • Working capital for allied activities and non farm sector activities.
  • Finance against storage receipts/produce marketing loans (against his own farm produce only) subject to maximum of Rs.5/- lacs per farmer. (Production Line of Credit may be enhanced as and when scale of finance for various crops is increased by the District Technical Committee and/or SLBC).

 

4.2   Investment Line of Credit :

  • Extending credit facilities for horticulture crops, investment on farm developments such as development of land/irrigation facility, purchase of tractor, farm machineries and equipments, farm structures & buildings, draught animals/carts, milch cattle, transport vehicles, pre/post harvesting processing equipments and practicing modern/hi-tech agriculture with need-based project/farm infrastructures, plantation activities etc.
  • Extending facilities for setting up units of allied activities like dairy, poultry, fisheries, piggery, sericulture, etc. to supplement farm income/activities and also to ensure optimum utilization of available resources.
  • Extending loans for off-farm activities/needs of the farmer like personal loans including purchase of consumer durables, housing, subject to a maximum of Rs.1/- lac.
  • Loans for redemption of loan availed by farmers from non-institutional lenders, as advised by earlier circulars. (Projects with large financial outlay of above Rs. 10 (ten) lacs to be considered independently after fully satisfying on techno-economic viability aspects on merit).

 

  • QUANTUM OF FINANCE :

For the sake of simplicity, the ultimate limit may be fixed in round figures of thousands. Branches may consider total finance upto Rs. 10/- lacs under the revised Scheme. However, total Line of Credit beyond Rs. 10/- lacs may be considered in deserving cases, with the prior approval of Regional Authorities.

Format for assessment of comprehensive limit under the scheme is given as  Annexure – I

5.1       Production Line of Credit :

The credit extended under the Production Line of Credit would be in the nature of revolving Cash Credit and would provide for any number of withdrawals and repayments within the limit.

The same shall be fixed equal to the sum of :

  • Farmer’s need for cultivation expenses based upon the cropping pattern decided by him at the rate of scale of finance for crops approved by Technical Committee of the concerned District.

AND

  • Short term requirement like maintenance of tractor and farm implements/machineries not exceeding 15% of the limit fixed for crop cultivation expenses in point (a) above,

AND

  • Working capital requirement for allied activities like dairy, poultry, etc. as well as non-farm sector activities as may be assessed as per the need of projects being undertaken by him, subject to viability,

AND

  • Consumption needs, subject to the maximum of 15%/25%/35% of Production Line of Credit fixed for sum of point (a) and (c) above, depending upon the category of borrower. However, the same should not exceed Rs. 50,000/- per borrower.

(While assessing production credit limit value of land / collateral /security should not be kept in mind / considered. i.e. Need based finance be given.)

5.2 Investment Line of Credit

Quantum of finance for investment credit may be decided as per the needs expressed by the farmer for various investment and other purposes as mentioned under point (4.2) under the head fixation of credit limit - “Investment Line of Credit”, subject to following:

1

Farm Income

6 times of net annual income

                       OR

3 times of total annual farm receipts/value of crops (anticipated from the farm, taking into consideration type of crops, area under cultivation, etc.)

 

PLUS

 

Other income/income
from allied activities
and salary income if any

3 times of net anticipated annual income/profit from economic activities/allied activities (existing and proposed to be undertaken) /salary income if any.

OR

2

75% of value of land mortgaged as collateral security and 100% of value of other securities like assignment of LIC Policy (surrender value), pledge of KVPs/ NSCs/Bank’s TDR/Gold Ornaments etc.

Whichever is lower amongst 1. Income and 2. Value of Security

NOTE :

  • Sanctioning Authority can assess the value of agricultural land for farm credit limits upto Rs. 10/- lacs  taking into consideration the market rate prevailing in revenue village/Block and giving due weightage to type of land / irrigated or non-irrigated etc.

OR
Value as per the last sale deed available or the market value assessed by the office of the Registrar of Assurances for the area giving due weightage /discount in accordance with specific location and type of lands with or without irrigation facilities etc.
OR
As per the valuation report obtained from the Revenue Authority in the respective States or approved architect/engineer/surveyor/valuer of agricultural land registered with Government/under Bank’s approved panel.

  • However as per need based assessment and subject to viability of project, in case the amount of Investment Line of Credit limits assessed is more than the value of securities as mentioned above, sanctioning authority can relax the requirement of collateral securities as per the extant guidelines applicable.

However, if the same is not falling within the relaxation which the sanctioning authority can grant as per applicable norms, Regional Authority will have the powers to delegate authority to grant such advances on case to case basis under the scheme on relaxed terms, as far as collateral securities are concerned.

6  MARGIN

For regular Production Line of Credit limit no margin is prescribed and the limit is to be made available to the farmer based on scale of finance and cropping pattern for crop cultivation and other requirements as specified vide point (5.1) herein above.

On Investment Line of Credit limit, margin as prescribed under various schemes in operation is to be contributed, which may be reduced to 10% by the Sanctioning Authority in deserving cases with due justification as per exant guidelines of our Bank.

7 ASSESSMENT OF INCOME AND FIXING INVESTMENT CREDIT LIMIT

While assessing the amount of limits based on value of security and / or projected average farm income, the farm income has to be critically assessed. Once the overall limit vis-à-vis borrower’s repaying capacity is assessed, choice in priorities of investments based on the farmer’s own felt needs be allowed. Need based guidance to the farmers be given as and when sought for.

8  RATE OF INTEREST

As per norms applicable from time to time.

9  PAYMENT OF INTEREST ON CREDIT BALANCE

Branches will pay interest at Savings Bank rate on the credit balance if any maintained by the borrower in the situation of surplus with him in his production credit account.

10  VALIDITY PERIOD

Coinciding with the introduction of investment credit facility under BGKCC, the validity of the BGKCC will be 5 years subject to annual review. (However Branch may fix repayment schedule for more than 5 years also as per the requirements of the project.)

11  FACILITIES UNDER BARODA GUJARAT KISAN CREDIT CARDS

In order to recognise loyalty, satisfactory dealings, good recovery records, better use of Baroda Gujarat Kisan Credit Card, improvement in farm production, productivity and farm income, it is decided to provide following facilities / concession / incentives to different categories of farmer borrowers under this scheme.


Sr
No

Category of Borrower

             I
New & existing agril. Borrowers dealing with us since last 3 years

                II
Agril. Borrowers
Having satisfactory conducted borrowal account relationship with us for more than 3 years and upto 5 years @

                      III
Regular agril. borrowers dealing and maintaining
Satisfactory account with us for the period
exceeding 5 years having excellent repayment record @

1

Production Credit Limits 1

a. Crop Production Expenses.

Crop Production Loan determined based on scale of finance and area under different crop/s.

b. Farm Maintenance Limit

15% of 1(a)- Crop
Production expenses

15% of 1(a)- Crop
Production expenses

15% of 1(a)- Crop
Production expenses

C Consumption needs for family maintenance for one year

15% of 1(a) – Crop
Production expenses Maximum Rs.50,000

25% of 1(a) - Crop
Production expenses
Maximum Rs.50,000

35% of 1(a) - Crop
Production expenses
Maximum Rs.50,000

d Allied Activities - W/C

As per actual assessment of credit needs as per our usual norms

e Non Farm Sector
Activities – W/C

As per actual assessment of credit needs as per our usual norms

2

Farm Produce Marketing Loan

As per actual assessment of credit needs as per our usual norms Maximum Rs. 5 lacs

3

Investment Credit Limits

  • Agriculture activities.
  • Allied activities.
  • Non Farm Sector activities.
  • Personal Loans.
  • Loans for redemption of debt availed from non-institutional lenders

(1)

Farm Income

6 times of net annual income OR 3 times of total annual farm receipts/value of crops (anticipated from the farm, taking into consideration
type of crops, area under cultivation, etc.)

PLUS

Other income/income from allied activities and salary income if any

3 times of net anticipated annual income/profit from economic activities/allied activities, (existing and proposed to be undertaken) salary income if any

OR

(2)

75% of value of land mortgaged as collateral security and 100% of value of other securities like assignment of LIC Policy (surrender value), pledge of KVP / NSCs / Bank’s TDR/Gold Ornaments etc.

 

Whichever is lower amongst (1) Income and (2) Value of Security

4

Insurance premium
under PAIS shared by the Bank

As per existing rule As per existing rule.

As per existing rule As per existing rule.

Entire premium will
be shared by the Bank.

5

Concession in
Applicable rate of interest on production & investment loans

No concession in
Applicable rate of
interest

0.25%

0.50%

@ The default / delay due to natural calamities / drought etc. will not be considered as an adverse feature of farmer borrower account/s, for the period declared by the Government andaccordingly be justified in the sanction.

12  SECURITY

Security norms for overall finance made will be applicable as per banks guidelines for direct agriculture advance from time to time.

13. DOCUMENTATION

  • The set of documents for production credit limit account, farm produce marketing loan and investment credit limit accounts are to be obtained separately.
  • Farm produce marketing loan limit and Investment credit limits documents may be obtained alongwith production credit limit or subsequently (as and when it is availed) as per the convenience of the farmer borrowers looking to the State Recovery Act and provisions of the State under Indian Stamp Act.
  • Though it may cause some inconvenience to the farmer borrowers for execution of investment credit documents separately, it is required, considering the different slabs of rate of interest applicable based on overall outstanding and also payment of stamp duty for documentation/mortgage etc. which may otherwise tax the borrowers if documents are executed in advance and later on, limit is not utilised by the borrower.

14. ISSUANCE OF CARD

After sanction of BGKCC limits and after execution or obtaining security documents, BGKCC will be issued alongwith pass book complying with the following simultaneously. A distinct KCC number is to be assigned. Photograph of the cardholder is to be obtained and affixed on card.

Particulars are properly filled in the card. Borrower’s signature is to be obtained in the space provided on the card and verified with his signature in the application form. Card to be signed by the Branch Head / Authorised official only with his signature number. Card will  contain the date of issuance of card. Card should be issued with transparent plastic pouch. No charge is to be levied for issuance of laminated card.

15. ISSUANCE OF CHEQUE BOOK / PASS BOOK

A cheque book affixing rubber stamp of BGKCC for Production Line of Credit will be issued to literate BGKCC Card Holders to facilitate drawings from their accounts as and when needed and in the manner they want. It will also build up confidence in the borrowers and whatever limit has been granted, can be used by them as per their convenience without any hassles.

TIn the case of illiterate farmers, loose cheque leaves will be used by the branches as and when illiterate farmer visit branch for disbursement required.

No cheque book to be issued for investment credit account. However it will be disbursed immediately on request by the borrower as per our usual procedures for making direct payment to dealer.Wherever, farmer borrowers to request to purchase any investment items by issuing/drawing a cheque on their production credit accounts branches may allow them to do so subject to available unutilised sanctioned production credit limit and reimbursementof the amount to the debit of their investment credit account as mentioned under para 18 C.

After completing all entries, the card as well as cheque book will be handed over to the beneficiary alongwith BGKCC Pass Book.

passbook will contain four parts i.e. Basic information on borrowers, production credit account, farm produce marketing loan account and term investment credit accounts.

Each transaction in the accounts must be incorporated in the passbook duly authenticated by the Branch Manager / Authorised officials from time to time.

16.MAINTENANCE OF REGISTER :

A register shall be maintained at the branches titled as BARODA GUJARAT KISAN CREDIT CARD REGISTER (Annexure - IV ) Details of the card alongwith relevant information to be entered in this register and card holders signature should be obtained while handing over the card and cheque book to him. The register should be signed by the Branch Manager or anauthorised official on his behalf.

Card number (other than alpha code) and leaves number of cheque books issued to any card holder must be noted in the register as well as on the top of the ledger folio / account for the concerned account.

17. MAINTENANCE AND OPERATIONS IN THE ACCOUNT

  • Production Credit Account
  • After having assessment of the farmer borrowers, cheque book for production credit account should be issued to all literate BGKCC holders.
  • Branches will educate each of the literate borrowers about the safe keeping of cheque books and their proper use strictly for his own use related to productive purposes as envisaged in his loan application and the spirit of the scheme. The borrower will issue the cheque in favour of the concerned dealers of agriculture inputs / farm machineries & equipments and will also mention the purpose on cheque leaves
  • The withdrawal of cash through the cheque leaves of production credit account will also be permitted from the BGKCC issuing branch (only) so as to facilitate purchase of various quality inputs of production at reasonable / competitive cost. In case of illiterate borrowers, it will be done by using a loose cheque leaves issued by the branch as and when required.
  • The farmer will mention on the top of the cheque the purpose for issuance of cheque which will serve the purpose of declaration by the borrower and therefore there will be no necessity for production of bills and receipts by the farmers who avail the production credit facility. The fact that crop has been sown and standing in the field will be taken as proper utilisation of farm credit disbursed. Moreover, as the facility is to be allowed by way of Cash Credit, wherein farmer can deposit and withdraw as many times as he may require, each withdrawal may not necessarily represent purchase of inputs.
  • Branch will verify the end use of the facilities during their periodical farm site visitsand inspection of securities including standing crops charged to bank by the borrower. The farm site inspection report highlighting crop-wise area, conditions ofstanding crops etc. should be kept on branch records duly signed by the concerned Officer /Branch Manager.

B)   Farm Produce Marketing Loan Account

A separate demand loan account for the period not exceeding 12 months to be opened. The disbursement under this loan component should be made by direct credit to party/s production credit account. Separate guidelines will be issued for the marketing loan.

C)   Investment Credit Account

  • While Production Credit will be routed through a composite Cash Credit account as per the existing guidelines, it is decided that disbursement in investment Line of Credit be allowed on the basis of request letter stating purpose and adhering the margin norms. Payment for purchase of vehicle/equipment etc. may be made directly to the suppliers. On receipt of such request, branches will only complete the documentation part (if not obtained earlier for investment credit portion) for there quest received within the sanction already made for Production & Investment Line of Credit under BGKCC.
  • Branch can open more than one accounts for investment credit for term loans requiring repayment schedule not exceeding 60 months as well as term loan requiring repayment schedule more than 60 months as per the assessment of Investment Credit needs or as per the purpose of finance.
  • Subject to available unutilised sanctioned production credit limit, branches may allow farmer borrowers to purchase any investment credit item by issuing a cheque from production credit account. On their request, the branches will reimburse the amount by crediting in their production credit account at the earliest keeping in view cash margin requirements by debiting / opening investment credit accounts for the said items purchased on the production of bills, receipt or alternatively Credit Officer/Branch Manager concerned may verify end use and keep assets verification report evidencing end use of funds.

18. PRUDENTIAL NORMS FOR BGKCC :

Prudential norms for agriculture advances from time to time will be applicable to production credit accounts as well as investment credit accounts of BGKCC. It will be based on duration of major crop cultivation of the farmer borrower or the main activity of borrower i.e. Dairy, Poultry, Fisheries etc.

19. OTHER POINTS OF RELEVANCE:

  • Existing cards can be converted into revised BGKCC card after having review of existing facilities.
  •  The revenue records when obtained first time, it should not be older than 9 (Nine) months. There after fresh revenue records should not be insisted upto 3 years unless on local inquiry there is an addition / decrease in land area / survey number or any adverse change.
  • If there is a need to have deviation in the scale of finance / unit cost approved by NABARD / DLTC / State level Technical Committee on unit cost, the matter may be referred to regional office by the branches.
  • Take over of good agricultural loan accounts financed by other banks/ / financial institutions may be explored with due care and diligence.
  • The limits are to be fixed taking into account the total requirement of the farmer on annual basis for growing crops round the year as also other credit needs for allied agricultural activities such as dairy, poultry etc. and other domestic needs. Investment Credit loan facilities to be granted to our worthy agriculturist borrowers keeping in view their tentative adhoc planning for medium and long term period.
  • Since the limit is fixed by taking into account the requirement of the farmer on annual basis for all seasons and all farm activities and there is no restriction on number of transactions in the production credit account owing to mono crop problems, the farmer may be allowed to avail loan for the next crop before liquidation of the existing dues.

However the farmer borrower has to ensure that interest is serviced and turnover is made to maximum extent possible so that no drawal in the production credit account remain outstanding for more than 12/18 months depending upon the short duration / long duration crops.

  •  In case of Investments Credit items, Credit officer/ Branch Manager to verify end use of funds during post disbursement inspection and keep assets verification report on record.
  • The limit of investment credit should be reduced every year for the portion availed by the borrower. Remaining portion should be continued next year as unavailed Investment Credit Limit. (Refer Annexure-III).
  • There will be no commitment charge for non-utilization / under utilization of any of the credit limits.
  • The crop loan portion of the production credit limit should be covered as per rules under Rashtriya Krishi Bima Yojana (RKBY / NAIS) wherever it is in operation.
  • Accounts granted for farm credit and which are secured by liquid securities like FDR, NSC, KVP and pledge of Gold / Jewellery ornaments etc., BGKCC can be issued without stipulating any other securities, following norms for financing against such securities.
  • The card can also be issued to share croppers/tenant farmers with limit upto Rs. 10,000/- in general and not exceeding Rs. 25,000/- in exceptional cases.

20. OTHER TERMS AND CONDITIONS OF ISSUANCE OF BGKCC

  • The card should be used only by the card  holder and should not be allowed to be used by any other person on his behalf nor the card be handed over or transferred to anyone else.
  • The card holder should collect the original bills from the input dealers at the time of handing over cheque / chargeslip and receiving the input material purchased. The bank shall not be responsible for furnishing the original bills of the input dealer to the cardholder.
  • The bank shall not be liable, in any way whatsoever, if the cheque is not accepted by the dealer of Agri. Inputs / Agri. machinery. The bank is also not responsible for any defective inputs purchased or supplied by the dealer. Any claim or dispute between the cardholder and the input dealer will not absolve the cardholder from the obligation to pay to the bank all the dues.
  • The damaged cards shall be replaced by the bank on receipt of intimation from the cardholder against depositing damaged cards, and payment of Rs.20/- as fee. As and when smart card will be issued, the fees will be recovered as per the then prevailing rules.
  • In case of loss of the card or cheque leaves, the card holder should immediately notify the issuing branch duly furnishing the complete details and also the circumstances under which the card / cheques is lost. Verbal / Telephonic information should be confirmed in writing within 3 days. The Bank may replace lost card with new card / cheque leaves on completion of all the formalities relating thereto. The card holder shall bear fees for issuing a fresh card / cheque leaves in such cases. The Bank shall not be liable for misuse of the card in case of loss of the card / cheque leaves not reported in time or till such time the same is reported.
  • The bank reserves the right to delist / cancel a card and cheque leaves issued under the same for non-payment of dues / utilisation of card in excess of the sanctioned credit limit or misutilisation of funds. On payment of the entire amount due on such a card, bank may consider re-issue of the card / cheque leaves. The bank will have a right to seize /  delist card / cheque leaves directly or through input dealers.
  • A card and cheque leaves remain the property of the bank and shall have to be returned by the card holder or any other person who may be in the possession of the card / cheque leaves on bank’s demand.
  • The bank reserves the right to cancel the card facility at any time without notice/assigning any reasons or refuse to re-issue/renew/replace the card. Use of the card after notice or withdrawal is fraudulent and will subject the cardholder to legal action by the bank.
  • The sanctioned limit will expire on the death or insolvency of the card holder and the bank will be entitled to recover entire outstanding dues in the accounts of BGKCC holders alongwith interest on death or insolvency of the card holders from their legal heirs.
  • The legal heirs / assigns / legaties of the card will remain liable to the bank for the amount due on the card holder’s account in case of death of the card holder.
  • The card holder may at any time opt out of the scheme by surrendering the card / cheque leaves to the bank. However the card holder will remain liable for the transactions made by him before surrendering the card.
  • The bank will have a right to set off all the monies which the bank holds in the name of the card holder under any account with any of the branches of the bank against the dues under the scheme.
  • The bank is entitled to add/alter and amend these rules as deemed fit in its absolute discretion and without assigning any reasons whatsoever and the same shall be binding on the card holder. The card will be issued in the bank’s discretion and the bank will have a right to reject any application without assigning any reason whatsoever.

 

21. REPORTING OF TRANSACTION IN LBRS

The instructions of RBI in regard to reporting of transanctions under cash credit accounts in LBRs vide its circular No.LBS(SAA)BC.139/65-90/91 dated 18.06.1991 would apply to the BGKCC accounts. In this connection, the following aspects may be kept in view :

  • The credit limits sanctioned/likely to be sanctioned to the borrowers under the BGKCC scheme may be included in the Branch Credit Plan and report in LBR-1.
  • All debit entries (excluding those ralating to interest charges) may be reported in LBR-2 as and when such transactions take place.
  • The amount outstanding in BGKCC Production Credit account may be treated as production credit provided for short term agriculture purposes and amount outstanding in BGKCC investment credit account may be treated as term loan granted for agricultural purposes.

 

22. SUBMISSION OF MONTHLY REPORT

Bank has to submit the progress report on BGKCC on monthly basis to RBI in the prescribed formats given as Annexure V Part A, B & C. Branches should ensure that the statement reaches regional authority by the second day of the following month, as we have to submit the progress report to RBI by 7th of every month.

 

23. MASTER POLICY ON PERSONAL ACCIDENT INSURANCE TO BGKCC HOLDERS

The existing Personal Accident Insurance Package for the Kisan Credit Card holders will also be applicable to the farmers to be covered under revised BGKCC Scheme.

Our bank has introduced Personal Accident Insurance Package for the Kisan Credit Card holders. Branch to ensure that all BGKCC holders are covered under the said scheme and progress report on monthly basis is submitted in the format given as   Annexure - VI.

24. PUBLICITY MATERIAL & STATIONERY ITEMS :

Pamphlets in vernacular languages detailing the scheme will be printed and distributed through our branches in their respective operational area. Regional Office have to arrange for suitable pamphlets in regional languages as per requirements.

In order to promote recognition of our products for financing agriculture and allied activities in general and BGKCC in particular, publicity campaign through different media is to be done.

Stationery including laminated cards as well as Pass Books meant for BGKCC Revised Scheme will be supplied to branches through Regional Offices.

25. ENCLOSURES

BGKCC Application Form (Revised) --------------------------------------------------- Annexures I
Format for Assessment of Comprehensive limit for BGKCC (Revised) ----- Annexures II
Proforma for Investment Credit Limits utilisation Chart-------------------------- Annexure III
Proforma of Register for issue of BGKCC (Revised) ---------------------------- Annexures IV
Proforma for monthly progress report on BGKCC - Part A, B & C (Revised) --- Annexures V
Proforma for monthly progress report on PAIS ----------------------------------- Annexures VI

 
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