Priority Sector Adv
Priority Sector Adv
FINANCE TO INDIVIDUAL FARMER [SHG (SELF HELP GROUP) OR JLG (JOINT LIABILITY GROUP)] FOR AGRICULTURE AND ALLIED ACTIVITIES SHORT TERM LOANS - FOR RAISING CROPS INCLUDING TRADITIONAL /NON TRADITIONAL PLANTATION AND HORTICULTURE 10 L AGAINST PLEDGE or HYPOTHECATION-PRODUCE WORKING CAPITAL & TL FOR PRODUCTION & INVESTMENT for AGRIL & ALLIED ACTIVITIES LOANS TO SF/MF FOR PURCHASE OF LAND FOR AGRIL PURPOSE LOANS TO DISTRESSED FARMERS INDEBTED TO INFORMAL SOURCE Against appropriate collateral or group security
LATEST GUIDELINES
Direct Agriculture Bank loans to following entities would also qualify for lending to direct agriculture: Loans to corporates including farmers' producer companies of individual farmers, partnership firms and co-operatives of farmers directly engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture (up to cocoon stage) up to an aggregate limit of Rs.2 crores per borrower for the following purposes.
-RECLAIMATION AND LAND DEVELOPMENT -DEVELOPMENT OF IRRIGATION POTENTIAL -PRODUCTION AND PROCESSING OF HYBRID SEEDS -PURCHASE OF AGRICULTURAL EQUIPMENTS -CONSTRUCTION OF FARM BUILDINGS/STRUCTURES BULLOCK SHEDS, IMPLEMENT SHEDS, TRACTOR SHED -PURCHASE OF AGRICULTURAL LAND BY SF / MF -INVESTMENT IN SECURITISED ASSETS WHICH REPRESENT DIRECT AGRICULTURAL ADVANCES -MEDIUM TERM LOANS FOR DEVELOPMENT OF DAIRY, POULTRY, PIGGERY, FISHERY, STUD FARM, SERICULTURE
MICRO CREDIT
Loans of very small amount not exceeding 50,000 per borrower provided by bank either directly or indirectly through a SHG mechanism or to NBFC for on-lending up to 50,000 per borrower. Loans to poor indebted to informal sector: Loans to distressed persons (other than farmers) to prepay their debt to non-institutional lenders, against appropriate collateral or group security, would be eligible for classification under priority sector.
HOUSING
(i) Loans to individuals up to Rs. 25 lakhs in metropolitan centres with population above ten lakh and Rs.15 lakhs in other centres for purchase/construction of a dwelling unit per family excluding loans sanctioned to banks own employees. (ii) Loans for repairs to the damaged dwelling units of families up to Rs.2 lakhs in rural and semi- urban areas and up to Rs.5 lakhs in urban and metropolitan areas.
HOUSING (CONTD)
(iii) Bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to a ceiling of Rs.10 lakh per dwelling unit. (iv) The loans sanctioned by banks to economically weaker sections and low income groups (family income limit of Rs.1,20,000 per annum), the total cost of which does not exceed Rs.10 lakh per dwelling unit.
COMMON GUIDELINES
Filling of application forms
In case of Government sponsored schemes such as SGSY, the concerned project authorities like DRDAs, DICs, etc. should arrange for completion of application forms received from borrowers. In other areas, the bank staff should help the borrowers for this purpose. Branches should give acknowledgement for loan applications received from weaker sections. Towards this purpose, that all loan application forms supplied have perforated portion for acknowledgement. A running serial may be given in acknowledgement.
COMMON GUIDELINES
Rejection of Applications Branch Managers may reject applications (except in respect of SC/ST) provided the cases of rejection are verified subsequently by the Regional Managers. In the case of proposals from SC/ST, rejection should be at a level higher than that of Branch Manager. No education loan is to be rejected by the Branch Managers without concurrence of next higher authority. Register of Rejected Applications: A register should be maintained at the branch, wherein the date of receipt, sanction/rejection/disbursement with reasons there for, etc., should be recorded. The register should be made available to all inspecting agencies.
COMMON GUIDELINES
Dealing with the default Where the default is due to genuine reasons branches shall extend the period of loan or reschedule the installments under term loan. Once such a relief has been extended, the overdues become current dues and branches shall not compound interest. Branches shall charge interest on agricultural advances in respect of long duration crops, at yearly rests and shall compound the interest, if the loan/installment becomes overdue.
COMMON GUIDELINES
DISBURSEMENT Agriculture loans cash by obtaining receipt REPAYMENT Repayment based on assessment of surplus. Where repaying capacity is affected by natural calamity restructuring to be done RATE OF INTEREST No compounding of interest in direct agricultural advances on current dues. When crop loans or installments under term loans become overdue, branches shall add interest to the principal.
BANK RATE
RATE AT WHICH RBI LENDS MONEY TO BANKS FOR SHORT TERM REQUIREMENTS. CURRENT BANK RATE IS 8.50% FROM 19.03.2013
TARGETS