8. Agri Gold Loan(Subvention-Linked)

Purpose :These advances are granted to agriculturists for purchase of inputs or to meet the expenditure to raise crops

Type of Loan / Facility: Demand Loan (Agri)

Eligibility: Borrower should be an agriculturist engaged in raising crops. The applicant should satisfy the KYC guidelines.

Security: Pledge of Gold Ornaments

Quantum of Loan: The amount of loan is fixed according to the scale of finance/cultivation expenses and advance value of gold. The amount of loan should not be higher than the advance value of Gold ornaments pledged. Maximum Loan Rs.10 lakhs (For loan above Rs.5 lakh ornaments should be appraised by two appraisers)

Period of Loan: Depends on the period of the crops for which the loan is availed Maximum 12 months VALUATION:As fixed by the Bank from time to time

Margin: Nil

Rate of Interest

Limit	Interest Rate (% p.a)
Up to Rs.50,000/-	1% above Bank's Base Rate
Above Rs.50000/- and up to Rs.3 lac	1.75% above Bank's Base Rate
Above Rs.3 lac but up to Rs.5 lac	2.75% above Bank's Base Rate
Above Rs.5 lac but upto Rs.10 lac	3% above Bank's Base Rate

Interest Subvention

• Interest subvention is available from Govt. of India for short term crop loans upto Rs.3 lacs, sanctioned at 7% interest p.a. up to the due date subject to a maximum period of 12 months.
• If the farmer repays the crop loan within the due date/ one year, he is eligible for interest subsidy (subvention) declared by Govt. of India for prompt repayment. At present interest subsidy for prompt repayment is 3%.

Processing Fee and Appraisal Charges: Rs.4/1000 or part minimum Rs.30/maximum Rs.250/.

Appraisal of Gold Ornament

• To be paid to the appraiser. Rs.1/1000 minimum Rs.50 or part maximum Rs.300/-
• Appraisal of ornaments by the external appraiser can be waived up to Rs.25000/- if Head Cashier is satisfied with the purity of the gold. For loan above Rs.25000/- appraisal by external appraiser is necessary