Loans and Advances

1. Loans and advances are provided for Agriculture to all Activities:

i) Agriculture:- (Direct and indirect finance)

Agriculture to Allied Activities (Dairy, Fishery, Poultry, Bar-kipping etc (Direct and indirect finance)

ii) Small Enterprises:-

a) Micro and Small Enterprises engaged in manufacture/production.

b) Micro and Small (Service) Enterprises engaged in providing or rendering of services shall include small road and water transport operators, small business, professional and self employed persons and all other service enterprises.

iii) Retail Trade:-
Retail Traders/Private retail traders dealing in essential commodities (Fair Price Shop).

iv) Education loan:-
Education loan granted to women for educational purpose of their child particularly girls child (within the bank’s exposure limit).

v) Housing loan:-
Housing loan granted to women for purchasing of loan, construction of dueling house and loan giving for repairing of house etc within the bank’s exposure limit.

vi) Micro credit:-
Individual and self help group loan to fulfill the basic credit needs of common women, economically weak, those who are in need of small loan with simple procedure from the bank, KMUCB provides credit and other financial service for them under micro finance scheme within a prescribed limit of the same. It is available for individual, SHG And JLG etc for different income generating activities. The bank is supported by SIDBI, RMK and NEDFi under micro finance scheme.

vii) Loan to Self Help Group and Joint Liability Group:-
Bank provides loan to SHG and JLG as per bank’s board approved policy directly as per RBI guideline.
Number of member is SHG——-10—–20
Number of member is JLG——–4——10

2. Share Linking to Borrowing:

2.5% on secured lending
5% on unsecured lending

Unsecured Loans and Advance Policy will not apply in case of SHG. However, loan granted to JLG’s without tangible security will be treated as unsecured and will be subject to the extant limit on unsecured advances.

3. Exposure limit:

As per bank’s Individual Exposure Limit.

4. Amount of Loan:

Maximum amount of Loan should not exceed for times of the saving of the group.

5. Margin and Security:

As per bank’s Board approved Policy.

6. Documentation:

Bank prescribes very Small documentation for loan granted to SHG/JLG keeping in mind the object of the Policy— women empowerment.

7. Type of credit / Financial Accommodation:

i) Case credit

ii) Overdraft

iii) Bills Purchase

iv) Term loan

8. Loan Product Period arise:

i) Short Term up to 18 months

ii) Medium Term up to 60 months

iii) Long Term op to 180 months

9. Eligibility to a Borrower:

Any desirous and needy share holder member, sole proprietorships, partnership, Trust, Educational Institution and any other lawful organization of women, are eligible for receiving loan/ financial accommodation those company the terms and conditions of the bank.

10. Share Linking to Borrowings:

i) For Secured loan:- 2.5% of the loan Sanctioned.

ii) For secured SSI Unit:- 1% initially and rest
                                  1.5 in next two years of loan Sanctioned.

iii) For unsecured loan:- 5% of loan Sanctioned.

11) Assessment of Liquid Security for Sanction’s Loan:

SecurityPercentage to be calculated
a) Bank own TDR/RD/KDD/PKN etc.100% face value
After Lock in Period
75%-80% face value
Before Lock in Period
35%-40% of face value
c) LIC Policy