Advances against Bank’s own Deposits

 
i. Eligibility – Any Individual, Group of Individuals,   Proprietorship/Partnership Firms, Companies etc.
ii. Type of  Facility – Loan and/or Overdraft limit
iii. Purpose – For any legitimate requirement of Funds.
iv. Margin – 15% of the Present value of Deposit for General Public and 5% in case of members of staff of the Bank.
v. Rate of Interest   (i) For General Public
–
Loan Amount  Interest is to be charged 
Less than Rs. 10.00 lac  *2% above the applicable rate of interest on respective deposit account.  
Rs. 10.00 lac and above  *1% over and above the deposit rate. 
*No further relaxation in rate of interest is allowed 1% above the applicable rate of interest on respective Deposit A/C for members of staff respectively.
– Board of Directors may consider lower rate of interest to the general public, which shall not be less than 1 % over the applicable rate of interest on respective deposit
vi. Repayment – As required by the borrower, but not later than the date of maturity of Deposit A/c.
vii. Security – Pledge of Bank’s own Time Deposit Receipt       and/or Recurring Deposit A/C in the name of borrower or any third party.
viii. Other Conditions a) No credit facility to be allowed against the deposits of other Banks.
b) Weighted average rate of interest to be charged in case of Deposits of different rate of interest pledged with Bank as security.
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.
d) Board can further relax the condition of margin to the maximum of 5 % i.e. Bank can grant loan maximum up to 95 % of Bank’s own deposit.
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