Advances against the pledge of Govt. Securities

i.	Eligibility	–	Any Individual, Group of Individuals, Proprietorship / Partnership Firms Companies etc. who is a bona-fide Members of the Bank, including Nominal Members.
ii.	Type of Facility	–	Loan and/or Overdraft limit.
iii.	Purpose	–	For any legitimate requirement of funds except for speculative purposes and for purchase of various small saving instruments, like KVPs, NSCs etc.
iv.	Margin	–	10% of Face value of the instrument if repayment of the same is due within two years from date of sanction and 15% of Face value in all other cases.
v.	Rate of Interest	–	As per Bank’s rules.
vi.	Other Charges	–	As per Bank’s rules.
vii.	Repayment	–	As required by the borrower, but not later than the date of maturity of the instrument/s pledged with the Bank.
viii.	Security	–	Pledge of Govt. Security like NSCs, KVPs, other Bonds/Debts Instruments issued by Central or any State Govt. PSU etc. in the name of borrower or any third party, who shall be required to stand as surety for the facility.
ix.	Other conditions:	a)	Bank’s charge on the instrument to be registered with issuing authority of the respective instrument before disbursement of credit facility.
		b)	No financial accommodation to be allowed for purchase of same instrument which is proposed to be pledge with the Bank.
		c)	CEO shall have the discretion to relax the condition of margin up to the maximum of 5% in deserving cases on merit of each case.