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Traders dealing with agricultural commodities are eligible to avail KLT loans. Preference shall be given to the traders having previous dealings with our bank.
Trader Loan Scheme Details
Loans are to be granted to the extent of 60% of the value of pledged agricultural produce to the fresh borrowers and 65% to the existing Key loan borrowers by keeping 40% or 35% margin respectively. Branches should watch the fluctuations in the market rates of commodities and if at any point of time, the margin is eroded on account of reasons like fall in the market value or any such reasons whatsoever, the borrower should be called upon to regularise the account or to provide additional security/ stocks so that the margin remains unimpaired.
INSURANCE OF STOCK
- The stock kept in godown shall be insured for fire & burglary on the same day of disbursement of the loan.
- Pledged agricultural commodity is to be covered under Insurance with the Insurance a company having a tie-up with our Bank i.e. Iffco-Tokyo Insurance Co.
PERIOD OF LOAN
6 months. It may be renewed for a further 6 months. The loan amount is repayable in a lump sum at the end of the term of the loan.
All loan proposals shall be sent to HO for sanction.
STORING OF GOODS
- The storage of goods in the godown should be made only in the presence of the Bank’s personnel.
- In the case of new godowns, before securing the goods Branch Manager/Credit Officer should inspect the godown to determine the suitability and Safety as prescribed by the Bank.
- Goods/Stocks relating to different loans/borrowers should be stored separately to facilitate easy checking, counting, identification, and release.
- Borrowers should be asked to keep samples of stocks with them to avoid compelling the branch to open the godown for obtaining sample.
- The goods should be properly arranged in the godown so as to facilitate easy
checking /counting. Packages/bags should be arranged in rows of uniform size.
PREREQUISITE CONDITIONS TO GRANT LOANS
The Trader one who avail the KLT loan shall produce the following requirements before disbursement of the loan.
- The customer should have Current Account with the branch.
- Godown ownership/agreement letter along with No objection letter in favor of Bank by the godown owner shall be signed before Manager.
- GST registration copy duly mentioning the agricultural commodities in which customer is trading is to be produced.
- The customer has to produce either purchase bill or APMC receipt.
- Co-obligation of 2 persons who are assesses of Income Tax along with recent ITRs for the last 2 years will be considered only on the branch Manager’s recommendation.
RATE OF INTEREST
13 %.The revision in the rate of interest will be communicated by the Head Office from time to time.
QUANTUM OF LOAN
The minimum the loan amount that has to be granted is Rs. 10 lakh and a MAX up to Rs. 50 lakh.
The entire loan shall be repaid in 24 – 36 Equated Monthly Installments (EMIs), depending upon the repaying capacity of the borrower.
Processing Charges @ 1% of the loan amount shall be collected and for subsequent renewals @ 0.75% shall be collected
PRE SANCTION VISIT
Before disbursing the loan the godown where the agricultural produce is stored is to be inspected by the Credit Officer and Manager. Locks purchased by the Bank shall be locked to all shutters of the godown. The keys shall be kept in the Bank safely under dual control.
POST SANCTION INSPECTION
- Inspection of the pledged stock kept under godown shall be done by an officer every month to ensure the condition & correctness of the stock.
- Sample drawing of the stock by the customer shall be done in the presence of an officer of the branch invariably.