crop loan procedure

8/4/2019 Crop Loan Procedure

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WELCOME TO

Presentation on Crop LoanProcedure



Historical Perspective and Evolution ofco-operative credit delivery system

• Preponderance of money lenders in the pre-independence era –dependence on money lendersfor Agricultural Loan - Threat for loss of landownership- Deccan Revolt – political and economicissue to British Rule

• Enactment of Civil Procedure and land registrationsystem

• Emergence of co-operative credit delivery system to

serve the rural community• Evolution of short term co-operative credit structure

as a friend in need to the rural populace



Composite Credit Limit Application

• Prepared by the PACS in quadruplicate (R.O., Branch, PACS) withinJanuary of the preceding year – one copy to be retained as O/C, 3Copies to be submitted.

• Sl. No, Member’s Name with Father’s / Husband’s Name, Address,arable land (to be verified with Land/ P&DRegister), Crop wise allocation of land with respective SOF and

amount of loan, area and notional value of land mortgagedTotal loan amount for all crops, member’s signature/ LTI, Limit proposedby PACS, Limit proposed by Supervisor, Limit proposed by BranchManager, Limit sanctioned by RO



CCL Contd.

• CCL to be prepared for all members preferably in asingle lot, supplementary CCL to be prepared incase of necessity

• Member-wise credit limit not to exceed the maximumamount of loan defined from time to time (nowRs.1,50,000/)

• Sufficient mortgage of land to be ensured inappropriate cases

• All columns to be checked member-wise, checking

with reference to total columns may bemisleading.



CCL Contd.

• Accompaniments to CCL :

- Audited/ proforma BS etc.

- Uptodate cash account

- AGM/SGM decision on MBP- Board resolution for sanction of

individual member’s credit limits

- forwarding letter duly signed

• Authority in favour of the Bank to foreclosemortgage (if not so provided in the bye-laws)



Scale of Finance

• Decided by the DLTC comprising of PAO,ARCS, RM, Lead District Manager,Representatives of good working PACS, some

progressive farmers, (DDM,Nabard is aspecial invitee)

• SOF so far determined for 3 years ( asdecided by Bank now on annual basis) .



P&D/LAND REGISTER

• Sl. No., Name with Father’s / Husband’sName, Address, Property, Income, Expenses,Debts to the Bank, Mortgage of Land

• Property-Land : Mouza, Khatian No. Dag No.,Area, Nature of Land, Nature of ownership/ possession, Cattle and other incomegenerating assets with value



P & D Register Contd.

• Income – income from landed property, income fromother assets including deposits, total income

• Expenses – annual rental, cultivation expenses,other expenses & total

• Debts – to society, to others, total

• Mortgage – details of mortgaged land

• Signature – signature of member, Manager, etc.



MORTGAGE REGISTER

• Sl. No., Name, Father’s/Husband’s Name, Address; Land :Mouza, Khatian No. Dag No., Area, Nature of Land, Natureof ownership/ possession, valuation of land as per notionalvalue, date of creation of mortgage

• Mortgage should not be aged more than 12 years. In case

of necessity, fresh mortgage to be created• Special care to be exercised in case of new members andsuch members as are ADWDR beneficiaries

• PACS officials to check ownership of mortgaged property ofthe member annually and supervisors to have samplechecking, if not total checking

• To be verified if Mortgage Register is updated on anongoing basis



Checking of CCL by Supervisors

# Specified form to be filled in

# Particulars of CCL to be checked

# Membership to be checked with reference to Membership Register (updated)

# P&D Register/ Land Register to be checked

# All member-wise inner column to be checked

# Mortgage Register to be checked

# Enabling decision

# MBP, RBP to be checked

# Default of BOD members to be checked

# Checking of bye laws for enabling provision

# Cash - in - transit insurance



DRAWAL PETITION

> Coverage of Non-defaulter members only

Member-wise amount within sanctioned limit

No dues certificate for new memebrs

Uptodate Cash account

Cases of defalcations and actionsthereagainst

Proper utilisation funds drawn in the previousdrawal



DOCUMENTATION

• Documentation to precede disbursement• Acceptance of terms and conditions of sanction

• KARBANAMA (Mortgage)

• Joint and several personal guarantees in suitable cases

• Time Promissory Note (TAMASUK)• Authority for foreclosure (if not so provided in the bye-laws)

• Demand promissory note

• ALL DOCUMENTS TO BE EXECUTED PROPERLY BOTHFOR MEMBERS AND SOCIETY

• Safe Custody of Documents at both levels



DISBURSEMENT

• Must be within seasonality period at all levels.• Proper Share linkage to be ensured

• To be disbursed by credit to individual SB accounts in case ofdeposit mobilising PACS

• Cash disbursement should preferably be made in thepresence of Supervisor, CI/ Bank Officer

• Un-disbursed amount to be refunded to the Bank within 24hours excluding Holidays (alongwith disbursement certificate)

• Subsequent disbursements after proper utilisation of previous

drawals within residual sanctioned limit



Disbursement contd.

•Disbursement againstacknowledgement

•Documentation to precede

disbursement

•Disbursement to be made at aconvenient place



Disbursement contd.

• Disbursement to be made with a gap of intervening 7(seven) days fromrespective repayments

• Disbursement programmes to bedeclared before hand to inducerepayments by members for assuredcredit



CALCULATION OF INTEREST

• Interest to be calculated on daily productsbasis at both the levels

• Interest to be realised/calculated at half yearlyrests or earlier when repayments are made infull

• Penal interest to be charged as per norms

• No interest to be charged on amounts

refunded within scheduled time• Timing



PREPARATION OF DEMAND LIST

• Crop-wise, member-wise demand lists to beprepared

• Demand list is the main tool for monitoringrecovery

• Demand notice to be issued to the memberswell before

• Demand list to be prepared as on 31st March

and 30th June positively• Demand for both interest and principal



DETAILED LIST

• Member-wise detailed list as on 31st March tobe prepared and submitted

• This has to be checked by the Supervisor

thoroughly and by the Branch Manager/Officeron sample basis

• Detailed list to tally with personal ledgers



RECOVERY

• Recovery to be made within stipulated timeframe

• Prior declaration of subsequent dates of

disbursement enlisting assured credit willdefinitely help recovery

• Persuasive measures is a must beforecoercive measures

• Sections 95, 110, 128, 112



AGRIL INVESTMENT CREDIT

• Need for Investment Credit

• Eligible Borrowers

• Purposes

• Fixation of Repayment Schedule

• Demand Calculation

• Recovery



Infrastructure of PACS

• Office

• Godown

• CDF Assistance by NABARD

• CDF Assistance from WBSCB

• Possibilities for linkages with programmesunder ICDP, RKVY



Deposit Mobilisation by PACS

• Conditionally Win-Win Proposition

• Opportunities

• Threats

• Checks & Controls

• Permitted avenues for deployment of depositmobilised

• Deposit Guarantee Scheme undercontemplation by NABARD



Insurance

• Crop Insurance- scheme, modalities forcollection and remittance of premium,surveillance, receipt and appropriation of

claims received.• Cash-in-Transit Insurance

• Cash-in-Safe Insurance

• Cash-on-Counter Insurance• PAIS



ADWDR Scheme 2008

• Congrats for successful implementation• Impact of the scheme

• Initiatives by the STCCS,WB

• Recent leaflet- contents, intents, tasksenjoined

• Appropriation of receipted claims and related

accounting entries- original andsupplementary instructions with imports.



Revival Package

• Contents and intents• Stages of implementation

• Present tasks in respect of A/B/C Category

PACS• Accounting entries

• Deliberations



Interest Subsidy Scheme

• GoWB Interest Subsidy Scheme as valid upto31.03.2006

• GoI interest Subsidy Scheme as declared in

the budget 2009-10- contents, intents,opportunities, our endeavour to bank upon theopportunities.



Interest Subvention Scheme

• GoI Interest Subvention• GoWB Interest Subvention

• Interest Subventions leading to profitable crop

loan business enlisting branch profitability, toexplore the possibility with right earnest.



Business Diversification of PACS

• Paddy pledge business• Input business

• Consumer goods business

• Other business possibilities in the areas to bedeliberated upon



Reports and Returns

• Fortnightly return• NODC return

• KCC return

• Financing of ADWDR beneficiaries return• SHG return

• SLBC return

• Timely submission is a must to project yourachievements



WBSSP

• The scheme in brief• The modalities

• Scope for business development and branch

profitability• Timely submission of claims

• Dissemination of information

• Formation and financing of SHGs



Thank You

For Interactive Deliberations