LT Loan Operational Guidelines PDF

1. Security valuation: Land valuation and eligibility criteria: A. 100% of SRA value as per SRA certificate (or) B. Rs.3.00 lakhs per acre for wet land and Rs.2.00 lakhs per acre for dry land - whichever is less. The loan quantum shall be restricted to maximum Unit Cost approved...

1. Security valuation: Land valuation and eligibility criteria: A. 100% of SRA value as per SRA certificate (or) B. Rs.3.00 lakhs per acre for wet land and Rs.2.00 lakhs per acre for dry land - whichever is less. The loan quantum shall be restricted to maximum Unit Cost approved for the proposed activity. 2. Field verification, Sanction and Disbursement of L.T. Loans: Competent authority for carrying out field inspection is as under: Sl.No. Range of loan Competent authority to conduct field inspection 1 Up to Supervisor of the branch along Rs.2,50,000/- with CEO/Secretary of the PACS 2 Above Branch Manager along with Rs.2,50,000/- and supervisor of the Bank and up to Rs.5.00 CEO/Secretary of the PACS lakhs 3 Above Rs.5.00 AGM along with Supervisor of lakhs to Rs.8.00 the Branch and CEO/Secretary lakhs of the PACS. The Concerned nodal Officers (A.G.Ms/D.G.Ms) is competent to conduct field inspection. 4 Above Rs.8.00 DGM along with Supervisor of lakhs the Branch and CEO/Secretary of the PACS Field inspection officer/D.G.M will be appointed from time to time where A.G.M are acting as nodal officers. 3. Entrustment of Legal Scrutiny to Advocates: Management of the Bank shall decide on appointment of panel panel advocates for processing of proposals. a. P. Gangadhar Reddy, Nellore b. N. Rajyalakshmi, Nellore c. S. Chinna Reddy, Atmakur d. S.V. Vijaya Lakshmi, Nellore e. D. Haranadh, Naidupet f. V.Subhashinamma,Nellore g. M.Sree Deepthi,Nellore h. B.Parthasaradhi Reddy,Sullurpet i. A.Subramanyam,Gudur 5  j. Ch.Sai Krishna Reddy,Nellore Maximum amount of processing fee payable is as under: S.No. Loan amount Processing Fee 1 Up to Rs.1.00 lakhs Rs.300/- 2 From Rs.1,00,001/- to Rs.2.00 Rs.500/- lakhs 3 From Rs.2,00,001/- to Rs.3.00 Rs.750/- lakhs 4 From Rs.3,00,001/- to Rs.5.00 Rs.1,000/- lakhs 5 From Rs.5,00,001/- to Rs.10.00 Rs.1,200/- lakhs 6 Above Rs.10.00 lakhs Rs.1,500/- 4. Security (Mortgage Bonds): The landed property offered for mortgage by the members towards security will create mortgage in favour of PACS/Branch and Mortgage Bonds executed by farmers shall be kept in the safe customer has to be returned back to the borrower after closure of the loan within a maximum period of 30 days. The Branch Manager should immediately contact the HO for mortgage bonds executed by the bank after closure of the loan immediately along with the details. 5. Time frame for sanction and disbursement of loans by PACS/DCCBs: Particulars Time Frame Admission of Loan Application along with Pattadar passbook Day 1 and title deeds Preliminary Scrutiny and Obtaining of E.C Field inspection, appraisal, scrutiny Day 2 Legal Scrutiny and sanction by PACS Day 3 Loan Case No. and Sanction by Branch/HO of DCCB Day 4 Execution o f Mortgage B o n d and forwarding of Loan Day 5 application along with Mortgage Bond to the Branch/HO from PACS Sanction and disbursement by HO/Branch/PACS Day 6 6. Monitoring: Bank will have right to conduct spot verification/checks to ensure that terms and conditions of refinance are adhered to / complied with by the PACS. Bank will have the right to cause special audit of the books of accounts and other relevant material of the bank, either by itself or through other agencies (at borrowing entity's cost) to ensure that the same are maintained as per the rules and regulations in force and the terms and conditions of refinance are adhered to by the PACS. 6 7. DV Files: After disbursement of LT loans, the Branch Managers and Supervisors has to collect the processed file i.e. DV File as per the instructions of Head Office and keep in dual custody of the same with the Brach Manager and Supervisor and report to Head office in this regard on monthly basis before 5 th of succeeding month. 8. Others: The branches shall ensure coverage of LT Loans to farmers under the categories of SCs, STs and Small and Weaker Sections as prescribed. The branches shall adhere to the various terms and conditions, guidelines as communicated from time to time relating to Valuation of Lands, Field Inspection and Delegation of Powers for sanction of Loans and the technical parameters etc. The branches shall furnish Loan agreement, TP Note and DP note from PACS in the proforma communicated and submit to HO. For LT loaning evaluation fee should be collected on loan sanctioned @ 0.5% (excluding GST) subject to a maximum of Rs.1500/- of which 50% should be remitted in Bank and the remaining 50% should be kept in PACS. The PACS shall pay the instalments (Principal + Interest) on the specified due dates. Maximum limit for an individual is restricted to Rs.60.00 lakhs. The PACS/DCCB shall ensure that the asset financed is insured, till the loan amount is repaid in full. Branches shall complete the disbursement under all purposes by end of February every year and effectives are to be reported to Head Office latest by 14t March, to enable Head Office to claim refinance from APCOB. Penalty for pre-payment will be 2.50% p.a. and will be chargeable for each instalment due separately for the entire period (minimum 6 months) from the date of prepayment to the date on which the instalment is actually due for payment. The prepayment can only be initiated after minimum notice of 3 working days. 7