ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA

Transcription

1 1 ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA Circular No BC-CRD. Date: PRAGATHI KISAN SWARNA (PKS) Scheme A new loan product to Agriculturists for investment credit against security of gold ornaments Branches are aware that at present the Bank is extending the jewel loans under the following categories. Jewel Loan (Agri) for crop production purpose. Jewel Loan (General) for consumption purpose. Bullet Gold Loan for consumption purpose. Pragathi Swarna Credit Card as CCOD. During the customer meets/meetings of farmers, the farmers have expressed that they need a farmer friendly scheme under which they can instantly avail the jewel loan for meeting their expenses towards the investment credit needs i.e., for repair of electric motors, replacement/repair of farm equipments, etc. At present the Bank is obtaining documentary proof of land records for sanction of Jewel loan (Agri) at 7% for crop production purpose and all the norms applicable to KCC are being complied like scale of finance, etc and the maximum loan limit under this scheme is Rs /- with interest subvention facility. It is observed that the farmers have some investment credit needs of agriculture, which do not fit into the norms of existing Jewel Loan (Agri) scheme. Therefore, to suit the requirements of the farmers a new scheme viz., Pragathi Kisan Swarna for investment 12% p.a. is prepared and placed in the Bank s Board Meeting held on The Board has permitted for implementation of the scheme. Accordingly the new schme viz, Pragathi Kisan Swarna (PKS) Scheme is introduced w.e.f Following are the salient features of the scheme. Salient features of the Scheme: 1. Purpose: To meet the genuine investment credit needs like purchase/repair of electrical motors, oil engines, repair of tractors, land development, laying of pipe line, repair of pipe line, allied activities and any other agricultural investment. 2. Eligibility: All agriculturists are eligible. The branch shall obtain proof of land holding to confirm that the applicant is an agriculturist. 3. Categerisation of advance : The loan will be classified as Agriculture advance. It shall be classified under a separate CBS product code with the name Pragathi Kisan Swarna (Investment Credit). 4. Quantum of loan: Maximum Rs.3.00 lakh per party with 75% of market value of gold or Rs.1800/- per gram of 22 carat purity, whichever is lower. The per gram lending rate shall be fixed based on the market rates from time to time.

2 2 5. Rate of interest: 12% p.a. on half yearly basis. No overdue interest shall be charged upto Rs.25000/- and in the case loans exceeding Rs.25000/- overdue 2.25% p.a., from the date of overdue shall be charged. Interest shall be compounded after due date. 6. Security: Pledge of gold ornaments with 22 carat and above purity. Gold coins issued by Banks only can be accepted. 7. Release schedule: Directly to the party through the existing operative accounts. 8. : The entire loan amount along with interest shall be repaid within 24 months from the date of sanction. 9. Jewel appraiser fee: Rs.3/- per thousand rupees with a maximum of Rs.500/-. [ 10. Processing charges: Upto Rs.25000/- Nil and above Rs.25000/- 0.5% + ST with a minimum of Rs.50/- + ST. 11. Inspection charges: NIL 12. Sanctioning powers: Scale I Branch Heads Scale II Branch Heads Scale III Branch Heads Scale IV Branch Heads 13. Credit limits: Limits need not be obtained. 14. Documentation: Jewel Loan application (ADN-9) along with Jewel Appraiser s certificate shall be obtained. In the jewel loan application the investment credit purpose shall be specifically mentioned, such as repair of motors, tractors, etc., as the case may be. Further a xerox copy of the proof of land holding shall be placed along with the loan application. A declaration (Annexure-I) shall be obtained from the farmer in the enclosed format mentioning the purpose for which he is seeking the loan. 15. Other points/conditions: a) Jewel loans shall be sanctioned to the customers whose SB/Current Accounts are opened as per KYC norms. b) No interest subvention is applicable to this scheme. c) The amount sanctioned under this product need not be clubbed with the amounts sanctioned under other products for arriving at the per party limit. d) The loan shall be sanctioned taking into consideration the requirement of the farmer for meeting the expenses related to investment in agriculture or allied activities. The Branch Manager/Asst. Manager (Advances) shall certify the end use in the enclosed format. (Annexure-II). e) The quantum of loan shall be properly assessed taking into consideration the requirement of the farmer for investing in agriculture/allied activities, in addition to the value of the gold pledged. The value of the gold pledged alone will not be the criteria for determining the quantum of loan.

3 3 f) The indicative unit cost for various investment activities is provided in Annexure- III, which will be incorporated in the loan application, to arrive at the correct quantum of loan that can be considered. The information furnished in the Annexure is only indicative and branches shall arrive at the quantum of loan after taking into consideration the actual amount required for investment purpose. However, the above is subject to the per gram lending rate that can be considered on the news paper quotes of gold rate for arriving market value of gold. g) The jewels/gold pledged shall be appraised by the jewel appraiser properly in the presence of the Branch Head as per norms before arranging the facility. h) Branches should ensure that sufficient margin is maintained between the gross weight and net weight of the gold/jewels by taking the purity of gold, stones, etc. into consideration. i) Interest shall be calculated on half-yearly basis and debited to the loan a/c. j) The principal along with interest shall be repayable within 24 months from the date of arranging the loan. k) The accounts shall be reviewed periodically to ensure that the loan amount does not exceed the value of jewels. The loan along with interest shall invariably be recovered within the due date i.e., two from the date of arranging the loan. Care should be taken to recover the balance outstanding in the loan account when it is likely to exceed the realizable market value. For the un-recovered portion of the loan amount even after auctioning of jewels, accountability will be fixed on the concerned Manager as Para no.12 of the Cir.no BC-CD dt and same will be recovered from him / them. l) The loans shall be governed by the extant Income Recognition, Asset Classification and Provisioning norms as applicable to agriculture advances. The Branches/ROs advised to promote this product vigorously which will help the farmers to meet their investment credit needs immediately. (D.SAMPATH KUMAR CHARY) CHAIRMAN

4 4 Annexure-I DECLARATION I,, resident of village having SB A/c No. with Branch, APGB, hereby declare that I have acres of agriculture land and require Rs. as loan against pledge of jewels for purpose. (Please mention the purpose). Signature of the borrower. Annexure-II UTILISATION CERTIFICATE The loan under Pragathi Kisan Swarna Scheme availed by Sri (A/c No. ) for (indicate purpose) has been utilised for the purpose for which it was availed. Date: Signature of the Head of the Branch/ Authorised Officer

5 5 ANNEXURE-III Indicative of various Investment Credit I. ANIMAL HUSBANDRY Item of investment Unit Size (No. of animals) (Rs) 1 Dairy Cross Bred Cows Graded Murrah Buffaloes Mini dairy 5 (3+2) Mini dairy 10 (5+5) Female Calf Rearing 1 No Fodder cultivation 1 acre period 2 Sheep Breeding Unit Nellore breed Breeding Deccani breed Ram Lam Rearing 20 per batch Cash credit 3 Goat Rearing Unit (Osmanabadi) Piggery Breeding Unit Breeding Unit Poultry Broiler farming Any size Building, 5 Asbestos Rs /sq ft., Equipment Rs.10-12/bird 6 Independent broiler units Any size Rs /bird 7 Layers Preferably over layers Rs /bird 8 8 Emu Birds Preferably over 50 pairs Plough Bullocks Non Descript (pair) Halikar (pair) Bullock Cart Pneumatic Local Cart II. FISHERIES Item of investment Unit Size (ha) (Rs) 1 Inland Fish Culture Do Inland Fisheries Intensive Fresh Water Prawn Culture period

6 6 B. Farm Mechanization Equipments/Implements Item of Investment Rs. period Gestation/ Grace period APAU Puddler Nil Annual 2 30 APAU Puddler Nil Annual Post Harvest Equipments Item of Investment 1 Groundnut thresher of capacity kg/hr with 10 HP air cooled diesel engine 2 Groundnut decorticator Rocking type kg pods per hour capacity with 2 HP electric motor Gestation/ period Grace period - Rs Nil Annual Nil Annual Cost of Electric, Diesel, Kerosene and submersible pumpsets. Item of Investment period Rs. Gestation/ Grace period HP Electric Pumpset Annual 2 5 HP Electrict Pumpset Annual HP Electric Pumpset Annual 4 5 HP Diesel Engine Annual 5 8 HP Diesel Engine Annual Cost of Pipe line for distribution System RPVC Class 4 Kg/cm meters per ha Pipe Dia Gestation/ Cost per period Grace period - meter (Rs) 1 75 mm Annual 2 90 mm Annual Plantation & Horticulture Crop (Rs) period Gestation/ Grace period - 1 Banana (normal suckers) Annual 2 Banana (Tissue Culture) Annual 3 Sweet Orange Annual 4 Guava Annual 5 Mango Annual 6 Papaya months Annual 9 Pomegranate Annual 10 Sapota Annual