Banks loan policy:
i) Keeping in view the various Regulatory/Statutory & Banks own internal requirements, loan policy has been formulated for the year 2013.2014, The details are,
a) Exposure ceiling to individual / Group of borrowers / Different sectors &
b) Unsecured Advances limit to individual Borrowers / group of borrowers, including Discounting of cheque, The limits applicable are as approved by the Board, mentioned above at agenda item No II under 1 & 2
C) Priority sector Advances :- As per RBI guide lines 40% of Bank’s total advance should consist of priority sector. Out of which 25% will be for weaker section and the targets are allocated accordingly for the year 2013.14, Loan to
i) Agriculture (Direct/indirect) & its allied activities
ii) Small enterprises
iii) Micro credit
iv) Education loans
v) Housing loans and
vi) Weaker section are classified as priority sector.
2) Other Term & Conditions:
a) Chairman is empowered to sanction Personal Loan, Mortageloan, Housingloan, Other term loans Up to Rs3.00 lakhs. The loan committee is Empowered to sanction loan above Rs 3.00 laks The Branch managers are empowered to sanction,
i) Gold loans up to Rs 0.99 lakhs, Above Rs 0.99 lakhs by the C E O
ii) Deposit loans ( 90% of the deposit amount)
iii) Cheque discounting up to Rs 1,50,000./- to well known and worthy customers only, for all other loans sanctioning authority is of Loan committee Board of Management only
b) Collateral security :
The existing policy of obtaining @ 80% of collateral security should continue for this year also.
Two sureties should be obtained for secured as well as unsecured loans.
d) Processing Fee: 0.5% of laon amount.
e) Repayment period: To a maximum of 60 Months.
f) Recovery, legal Action, NPA a/c s:
The concerned Loan Officer shall contact the borrowers regularly and ensure recovery as per repayment schedule Legal action to be initiated with prior approval of the Board, whereever necessary. Incase of loan a/c s slipped in to NPA category on account of lapses by the staff, necessary action to be initiated against the concerned
9) The Asset shall be verified before sanction & after sanction of loan
3) Documentation required before sanction of loan.
The loanee shall submit the following documents along with application form for loan.
i) Documents related for KYC compliance as per RBI guidelines,
ii) Related project report/Balance sheet ( for 3 years)duly furnishing the details for Term loan / Working capital requirements. Where ever required
h) The end use of the loan to be ensured.
iii) Proof of income for personal / housing loans to arrive at the loan eligibility & repayment capacity.
iv) In case of go down / House construction detailed estimation and approved plan from the concerned authority.
v) Collateral security of Immovable property. The related documents duly cleared by Banks legal Advisor and valuation of the property by approved valuer. /Sub. Registrar Value
4) Documentation required before release of loan:
i) D.P.Note set
ii) Loan agreement
iii) Guarantee agreement
iv) Memo of deposit of title deeds
v) Simple Mortgage of Immovable Property. With registrar for above Rs 3.00 Lakhs loan and equitable mortgage up to Rs 3.00 lakh loan
vi) Letter of sanction
5) Granting loans and Advances to Directors and their relatives :
Co.Operative urban Banks are prohibited to make, provide or renew either secured or unsecured loans and Advances or any other financial accommodation to its directors or their relatives and the firms/Companies/Concerns in which they are interested except loans against their a owned Deposits and against L.I.C Policies standing on their own name.
6) Advances against shares,Debentures and Bonds:
Sofar,our Banks has not sanctioned loans against shares,Debentures and Bonds.The same policy may be continued in the present financial year also
7) Exposure to Housing,Real Estate Sector and Commercial Real Estate. As per R.B.I guidelines,the exposure of urban Banks to housing,real estate and commercial real Estate are limited to 10% of their total assets of the previous year. However it can be extended up to additional limited of 5% of total assets for the purpose of grant of housing loans to individuals for purchase of construction of
dwelling units costing up to Rs.10.00 lakhs
Total .Assets as on 31.03.2013 Rs 2869.75 lakhs
10% or the above Rs 286.97 lakhs
5% of the above for sanctioning Rs 300.00lakhs
Housing loan up to 10.00 lakhs