1.PRAGATHI KCC/PRAGATHI  MULTI PURPOSE KCC:

Pragathi Kisan Credit Card/Pragathi Multi purpose Kisan Credit Card addresses these national policy concerns admirably as it provides hassle free credit to farmers taking into account the entire production credit requirements of the farmer for the full year. The scheme also provides for comprehensive coverage of the entire range of credit needs of the agriculturist including investment credit needs for agriculture, ancillary activities and even consumption needs to a limited extent i.e. 10% of the loan amount or Rs.10000/- whichever is less.

Hence, it is insisted that concerted efforts should be made to improve the coverage under the scheme by conducting ‘grama sabhas’ to identify non-loanee farmers/other needs of the farmers and to ensure that all eligible borrowers are covered under any one or more of our schemes.

2.PRAGATHI PRODUCE LOAN SCHEME:

The scheme is introduced to protect the interest of the small and margin farmers who are the Bank’s major clientele. The scheme is introduced by the bank to finance against the pledge of the produce to meet out immediate needs of the farmers thereby preventing distress sale of produce during harvest/glut seasons when the market price will be much low. Depending upon the market trends the SF/MF avail loans against their produce and sell in the market, when there is remunerative market price, thereby earn more income.

3.PRAGATHI AGRI GOLD SCHEME:

Jewel loans can be sanctioned to the customers for the purpose of agricultural operations up to Rs.2 lakhs per borrower with the interest rate applicable to the Pragathi KCC holders. Repayment period is one year after arranging the loan based on the agricultural seasons. The per gram lending rate is Rs.1500/- on the net weight of the ornaments or 75% of the market value of the ornaments as on the date of arranging the loan, whichever is less. All the prudential norms applicable to the Pragathi KCC will also applicable to these loans.

4.PRAGATHI GENERAL GOLD LOAN SCHEME:

All the customers of the branch, who are having SB / Current a/c are eligible for coverage under the scheme. The loan is extended for meeting any productive purpose / agriculture / consumption needs, other than speculations with per party limit upto Rs. 2.00 lakhs.

The per gram lending rate is Rs.1500/- on the net weight of the ornaments or 75% of the market value as on the date of arranging, whichever is less. The loan amount is disbursed directly to the party or through the existing operative account. The loan shall be repayable in 2 years. The loan is secured against security of gold ornaments with 22 carats purity, gold bars / coins with 22 carats and above purity.

The loan carries an interest rate of 13% p.a. with monyhly compounding basis and overdue interest at 2.25% over the normal rate shall be charged on the overdue loan amount.

5.PRAGATHI BULLET GOLD LOAN -NON PRIORITY:

All the customers of the branch, who are having SB/Current Account are eligible for coverage under the scheme.  The loan is extended for meeting any productive purpose / consumption needs other than speculation with per party limit up to Rs.1.00 lakh.  The loan amount along with interest shall be repaid within 12 months from the date of sanction.  Per gram lending rate is Rs.1,550/- on the net weight of the ornaments or 75% of the market value (80% for hall marked jewels) whichever is less.  The loan amount is disbursed directly to the party through the existing operative accounts.  The loan is secured against security of gold ornaments, Gold coins with 22 carat and above purity.

The loan carries an interest rate of 13% p.a., with monthly compounding basis and overdue interest at 2.25% over the normal rate shall be charged on the overdue loan amount.

Per gram lending rate of gold for granting various schemes of Gold loans as under.

	Scheme	Per gram lending Rate
(1)	Pragathi Agri Gold Loan.	Up to Rs.1,550/- per gram on the net weight or 75% of market value (80% for hall marked jewels) whichever is less.
(2)	Pragathi General  Gold loan / Pragathi Swarna Credit Card.	Up to Rs.1,500/- per gram on the net weight  or 75% of market value (80% for hall marked jewels) whichever is less.
(3)	Pragathi Bullet Gold Loan.	Up to Rs.1,550/- per gram on the net weight or 75% of market value (80% for hall marked jewels) whichever is less.

6.SELF HELP GROUPS     (SHGs):

In tune with the Government of India/Reserve Bank of India/NABARD policy for extending hassle-free financial support to the Self Help Groups, the SHG bank linkage programme shall be given due importance. In this process, all the eligible ‘A’ rated groups shall be considered for financial assistance adequately       basing on the Micro Credit         Plans.

The interest rate shall be 14% p.a. irrespective of the quantum of the loan and the minimum repayment period shall be 24 months. In case of groups where the financial assistance is Rs.1.00 lakh and above, the repayment period       shall   be 60 months.

The assets created out of the financial assistance shall be the security. The decisions of the State Level Bankers’ Committee (SLBC) to be adopted from time to time.

7.RYTHU MITRA GROUPS (RMGs):

In order to consider financial assistance mainly to the SF/MF/Tenant Farmers/Share Croppers/ Lessee farmers, financial assistance required to RMGs may be realistically assessed and financed and repeat finance may be extended up to 1:20 depending on quality of the RMG and the recovery position of the loans extended to   RMGs.

The financial assistance can be for crop production, investment credit, etc. and repayment period shall be as per the scheme/purpose. The good functioning groups shall only be considered for financialassistance.

The interest rate shall be 7% up to Rs.3.00 lakh in the case of crop production loans and in the case of investment credit depending upon the purpose.
 
The assets created out of the financial assistance shall be the security.

8.FINANCING TENANT FARMERS - JOINT LIABILITY GROUPS :

Since the system of tenant farming is also prevalent in our area, the tenant farmers should also be financed either through Joint Liability Groups (JLGs) formed exclusively for tenant farmers or to the individual tenant farmers. It should be ensured that they are not denied any credit for crop production purpose or other genuine productive activities and at least 2% of our crop production finance is extended to tenant farmers.

9.INVESTMENT CREDIT:

It is considered as imperative to increase the share of investment credit to at least 30% from the present level of 18% to 20% against total agricultural credit. Hence, the Bank has taken measures to train the Branch Managers and Officers (Adv.) on investment credit activities to enable them to appreciate the need of the investment credit to farmers and to implement the following schemes depending upon the need of the farmers in their area of     operation.

Dairy Farming (Pala Dhara), Sheep Rearing, Heifer Calf Rearing, Ram lamb Rearing, Pragathi Farm Mechanisation, Kisan Pumpsets, Horticulture and Orchards, Bio-Diesel, Land Purchase Scheme, Agri Business & Agri Clinics, Pragathi Jalaraksha, Sericulture, Fisheries, Rural Godowns, Bio-Gas, Organic Farming, Vermiculture and Vermicomposting, Venture Capital, Cold Storage, Milk Chilling Centres, etc.

10.PRAGATHI FLEXI TRADE LOAN:

To finance traders/small business men who intend to avail working capital term loans instead of cash credit finance. The repayment period will be 60 months. The security is, up to Rs. 1 lakh- hypothecation of the stock-in-trade; above Rs.1 lakh- hypothecation and mortgage. The security coverage shall be 150% of the loan. The borrower’s contribution will be 25%.

11.PRAGATHI SWAROJGAR CREDIT CARD SCHEME:

NABARD has issued comprehensive guidelines on SCC under which the working capital or block capital or both to small artisans, handloom weavers, service sector, fishermen, self-employed persons and other micro entrepreneurs are covered. SHGs can also be covered under SCC Scheme. Hence, it should be the endeavour of the Bank that all the above activities should be financed under this scheme wherever their credit needs are up to Rs.50000/-.

12.PRAGATHI GENERAL CREDIT CARD:

NABARD has given detailed guidelines of the scheme. The loan amount is limited to Rs.25000/-. This facility is in the nature of over draft or cash credit and it is designed for meeting out the general credit needs of the customers of small means, without insisting on purpose and end use of the credit. This should be used as a major tool to achieve 100% financial inclusion of rural and semi-urban house holds.

13.PRAGATHI RURAL TOURISM:

There is a lot of scope and potential in this sector for financing, especially in the rural tourism activities. Certain specific pockets in the rural areas like those near beaches, river banks, places of pilgrimage, parks, places of scenic beauty, offer scope for rural tourism of diverse kinds like Echo Tourism, Craft based tourism, Agri tourism, Folk/Art based tourism, etc. provided wide scope for extending credit by Banks.

14.PRAGATHI VIDYA SCHEME:

Maximum loan amount for studies in India is Rs.10.00 lakhs and for studies in abroad is Rs.20.00 lakhs. No security up to Rs.7.50 lakhs and collateral security of 100% of loan amount for the loans above Rs.7.50 lakhs. Repayment for these loans is 5 to 7 years commencing from 1 year/6 months after completion of course or on securing the job whichever is earlier.

15.CENTRAL SCHEME TO PROVIDE INTEREST SUBSIDY (CSIS) ON   EDUCATIONAL LOANS TAKEN BY STUDENTS FROM ECONOMICALLY WEAKER SECTIONS(EWS) :

Govt. of India, Ministry of Human Resources Development , Department of Higher Education, New Delhi  has launched a scheme to provide interest subsidy for the moratorium period of Educational Loans availed by students from EWS to pursue Technical / Professional courses in India.    The scheme is effective from the academic year 2009-10. 

The scheme would be applicable only for studies recognized Technical / Professional courses in India.  The interest payable by the student belonging to EWS  for availing Educational loans for the period of moratorium i.e., course period plus one year or six months after getting Job whichever is earlier.

The benefits of the scheme would be applicable to those students belonging to EWS with an annual gross parental / family income upper limit of Rs.4.50 lakh per year (from all sources).

The scheme shall be applicable from the academic year 2009-10  starting 1st April, 2009.  The loan amount taken starting from the Academic year 2009-10 (irrespective of the date of sanction) shall only be covered under the scheme of interest subsidy.  Interest on any amount disbursed before 01.04.2009 would not be considered for subsidy.

The scheme shall be implemented through Canara Bank, which is the Nodal Bank for the scheme.  However, the student can apply under the scheme only through branch where education loan is availed.

16.PRAGATHI SWAGRUHA SCHEME:

Maximum loan amount of Rs.20.00 lakhs under Priority and above Rs.20.00 lakhs upto Rs.50.00 lakhs in Non-priority subject to 85 % of the estimated construction cost/valuation of ready built house will be considered under the scheme. Security is mortgage of the site and building to be constructed thereon. For repairs/renovations also, we will consider loans up to Rs.2.00 lakhs in municipal areas and Rs.1.00 lakh in other areas.

17.PRAGATHI AWAS LOAN:

This housing loan scheme is designed to cater the needs of the persons who do not have recorded / verifiable income to be implemented in Urban and Semi-Urban areas.  Maximum loan amount of Rs.5.00 lakhs subject to 80% of the estimated construction or valuation of ready built house will be considered under the scheme.  For repairs/renovations, loan up to Rs.2.00 lakhs in Urban areas and up to Rs.1.00 lakh in Semi Urban areas will be considered.  Security is mortgage of house site and building to be constructed thereon / ready built house to be purchased.

18.PRAGATHI MULTI PURPOSE MORTGAGE LOAN (PRAGATHI MPML):

In this scheme, maximum Rs.25.00 lakhs of loan will be considered subject to 50% of valuation of property, 5 times of annual income, 50% of cut back. Security for the loan is mortgage of building/commercial complexes, etc. Repayment period of the loan is 7 years.

19.CAPITAL SUBSIDY-CUM-REFINANCE SCHEME FOR INSTALLATION OF SOLAR OFF-GRID (PHOTO-VOLTAIC AND THERMAL) & DECENTRALIZED APPLICATIONS UNDER  JAWAHAR LAL NEHRU NATIONAL SOLAR MISSION (JNNSM)

The Ministry of New and Renewable  Energy (MNRE), Govt. of India has introduced a subsidy linked Credit Scheme for Solar off-grid (PV & Thermal) and decentralized applications to promote commercial marketing of Solar energy systems and  devices by extending financial incentives in the form of Capital and Interest Subsidy through NABARD.

The currency of the scheme will be co-terminus with Phase-I (Initially up to March, 2013) of JNNSM.  The borrowers are required to bring in 20% of the cost of the project as the margin money for accessing the credit facilities from banks to acquire the assets.  The loans to cover the balance after reducing the eligible capital subsidy to an extent of 30%, would be extended with a repayment period not exceeding 5 years and would carry an interest rate of 5% p.a.  The loan amount shall be  repayable in suitable instalments not exceeding 5 years.

MNRE in consultation with IREDA and NABARD has finalized 11 model projects together with technical and financial parameters ranging the unit cost from Rs.3,000/- to Rs.60,000/-.

20.CENTRALLY SPONSORED SCHEMES OF ANIMAL HUSBANDRY SECTOR ADMINISTERED BY NABARD DURING 11TH FIVE YEAR PLAN PERIOD

The Government of India have introduced the following Animal Husbandry schemes to be implemented upto March 2012. 

1. Dairy Entrepreneurship Development Scheme
2. Integrated Development of Small Ruminants and Rabbits
3. Establishing Mother units for Rural Back yard Poultry
4. Pig Development
5. Utilisation of Fallen Animals
6. Salvaging and Rearing of Male Buffalo calves
7. Establishment/Modernization of Rural Slaughter Houses

Click here to view the gist of the above schemes.

21.PRAGATHI SWARNA CREDIT CARD:

All the individual customers of the branch, who are having SB a/c, are eligible for coverage under the scheme. The loan is extended for meeting both productive and consumption requirements with a per party limit upto Rs. 2.00 lakhs.

The Account shall be in the form of Cash Credit/Overdraft facility for a period of 2 years from the date of arranging the facility. The per gram lending rate is Rs.1500/- per gram on the net weight of the ornaments or 65% of the market value as on the date of arranging which ever is less.

The OD carries an interest rate of 13% p.a. with monthly rests and an ovedue interest @ 2.25 % over the normal rate shall be charged on the overdue loan a/c. The loan is secured against the security of jewels with 22 carat purity/gold bars, gold coins with 24 carat purity.

22.PRAGATHI COMMERCIAL COMPLEX LOAN:

Financial assistance up to 50% of estimated cost of construction will be considered under the scheme for construction of commercial complexes, school/college buildings, etc. Mortgage of site and building to be constructed thereon shall be taken as security. Repayment of loan is within 10 years, including the gestation period allowed.

23.PERSONAL BANKING   LOANS:

These loans can be considered to salaried class up to 15 months’ gross salary subject to 60% cut back norms. Repayable in 60 EMIs. All employees in Govt., Quaisi Govt., Local Bodies, Govt. Aided Bodies, etc. who are drawing their salaries through our branches are eligible to avail these loans.

24.ADVANCES TO REAL ESTATE SECTOR:

Loans granted for the purpose of acquisition of land, site, plot and/or construction of dwelling apartments or office space with an intention to generate income by selling the same and clearing the loan out of such sale proceeds may be classified as Real Estate Advances as follows:

• Advances to Buildings
• Advances to property developers
• Advances for construction of housing/office/ commercial complexes, shops, flats, dwelling units/houses for the purpose of resale
• Advances to this sector shall not exceed 4% of the gross credit of the Bank
• Prior clearance shall be obtained from the sanctioning authority to entertain proposals under real estate sector since the Bank has to exercise caution in view of the high risk involved and restrictions communicated by RBI.

Minimum criteria for considering Real Estate loan proposals:

• Loans to be project specific and the loan should invariably co-terminate with project completion and sale proceeds should clear the loan in full settlement.
• The borrower should already have been in this line of business with necessary proof of having executed such projects in the past preference shall be given to applicants who are existing clients of the Bank. New clients should be entertained on a very selective basis on merits.
• Value of the security both primary and collateral offered shall not be less than 200% of the limits sought.
• The margin should be 50% of the project.
• The average debt/equity ratio over the last 3 years should not have been more than 2:1.
• The average solvency ratio over the last 3 years should not have been more than 4:1.
• The repayment shall not exceed 35 months period.
• The prudential exposure limit shall not exceed two times the tangible net worth of the borrower.
• The end utilisation should be ensured that the bank credit is used for production development/construction activity and not for activity connected with speculation in real estate.
• Take-over of accounts in this category is not permitted.

25.TERM LOANS:

Loans which are repayable in not less than 36 months period are referred as Term Loans. There is need to increase lending under term loan category of our Bank both under Farm Sector and Non-Farm Sector. Concerted efforts have to be made to increase the advances under this category of loans and this alone will help to increase the outstanding advances and to sustain the growth rate and profitability.

26.REPHASEMENT OF TERM LOANS:

Rephasement of term loans may be considered by the respective sanctioning authorities on merits, after getting permission from the next higher authority, taking into account factors such as delay in implementation of project, delay in commencement of production and other genuine difficulties faced by the borrowers.

27.BANK GUARANTEES:

Only financial guarantees can be issued. These are guarantees which are given in lieu of purely monetary obligation. No guarantee should have a maturity of more than 10 years. Guarantee may be fully secured or partly secured. Guarantees may be issued with a minimum cash margin of 25% depending upon the merits of the proposal. The remaining 75% may be in the form of security  of movable/immovable properties.

Guarantee commission is Rs.300/- + 3% p.a. on the guarantee amount + Service Tax. For calculation of commission, part of year shall be taken as full year. If the guarantee is with 100% cash margin, Rs.300/- + ¼ of 3% p.a. of the guarantee amount + Service Tax.

28.SOLVENCY CERTIFICATE:

Solvency Certificate can be issued to the customers having satisfactory dealings with the Bank for the last 6 months. Solvency of an individual is concerned with his ability to meet all the outside liabilities. If tangible net worth of an individual is a positive amount, it shows that the individual can meet all his outside liabilities out of his total tangible assets. Solvency certificate should be issued only to the extent of tangible net worth of individuals

29.   PRAGATHI SRTO:

This scheme is introduced to meet the financial requirements for purchase of power driven vehicles i.e. Auto Rickshaws, Van, Boat, Lorry, Truck, Cabstar, Cars etc.  An individual or an association of not more than 6 persons propose to own and operate by himself or themselves as the case may be  are eligible for the loan.  Finance is restricted to 75% of the cost.  Security for the loan upto Rs.5.00 lakh is by hypothecation of vehicle to be purchased and for the loan amount above Rs.5.00 lakh requiring mortgage of immovable property worth 100% of loan amount apart from hypothecation of vehicle purchased.  Repayment period is 3 to 5 years.

30. SCHEME FOR SANCTION OF LOANS UNDER CREDIT GUARANTEE   FUND     
       TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE):

The Bank has joined as Member lending institution with Credit Guarantee Scheme of Credit Guarantee Fund Trust for Micro and Small Enterprises and the scheme is implemented with effect from 15.04.2008.
         
The Credit Guarantee Fund Trust for Micro & Small Enterprises was set up by GOI and SIDBI with an objective to provide Bank Credit without the hassles of collaterals / third party guarantees.  Importance given to project viability and secure the loan purely on the primary security of the assets financed.  It is our endeavour to give composite loans, both term loan working capital facilities to the borrower.  Interest rate is in accordance with GOI / RBI guidelines.

Credit facility sanctioned to Micro and Small Enterprises as defined under MSMED Act 2006 (Both manufacturing and service sector excluding Retail Trade) can be covered under the scheme.  Eligible credit facility under the scheme is Rs.50.00 lakhs per borrower.  Credit facility of above Rs.50.00 lakhs can also be covered under the scheme.  The Guarantee and service fee shall be passed on to the borrower.

 

31. PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME (PMEGP):

The GOI introduced a new scheme called 'PMEGP' by merging REGP(KVIC) and PMRY schemes. The scheme will be implemented by KVIC at national level and by KVIB at state level , District industries centre and Bank.

The main objective of the scheme is to generate employment oppurtunities in rural and urban areas of the country and to increase wage earning capacity of artisans. The maximum cost of project under manufacturing sector is Rs.25.00 lakhs and the maximum cost of project under Business/Service sector is Rs. 10.00 lakhs. The rate of subsidy under General category is 15% in urban areas and 25% in rural areas in project cost. Under special category like SC/ST/OBC/Minorities/Women/Physically challenged the subsidy in the project cost will be 25% in urban areas and 35% in rural areas.

The individual above 18 years of age is eligible and there will be no income ceiling for assistance for setting up projects. However, for setting up projects costing above Rs.10.00 lakhs in manufacturing sector and above Rs.5.00 lakhs in the Business/Service sector, the beneficiary should possess atleast VIII standard pass educational qualification. The repayment schedule is ranging between 3 to 7 years.

32.  CLCSS – Credit Linked Capital Subsidy Scheme for upgradation Small  and Micro Enterprises:

The scheme aims to facilitate technology upgradation of Small and Micro Enterprises units, by providing 15% capital subsidy for induction of well established and improved technologies.  The operation of the scheme is extended from X plan to XI plan (i.e. 2007-2012).  Sole proprietorship, Partnership, Co-operative Societies, Private and Public Limited Companies in SSI sector are eligible borrowers.  Capital subsidy under the scheme shall be available for such projects, where term loan have been sanctioned by eligible PLIs, on or after 4th December 2002.  Small Industries Development Bank of India, SIDBI and NABARD will act as the Nodal Agencies.

Promoters contribution, security, debt-equity ratio, upfront fee will be deferred as per existing norms.  Unit availing subsidy under CLCSS shall not avail any other subsidy for technology upgradation from Central / State / UT Government.  The scheme will be monitored by Governing and Technology Approved Board (GTAB).

33. Brief report on SHGs-Micro finance activities of the Bank

The SHG linkage programme, being one of the important programme implemented by the Bank as poverty alleviation programme besides as an effective tool for women empowerment in its area of operation i.e. Anantapur, Kurnool, Kadapa, Nellore and Ongole districts. It has opened 1,17,350 Self Help Group Accounts till the end of March, 2011. As such 12,32,175 SHG women are with the Bank.

The Bank, which has started SHG linkage programme with 36 groups with an out lay of Rs. 7.66 lakhs, reached to a level of linking 2,69,584 groups with financial out lay of Rs. 2,38,100 lakh as at the end of March, 2011.

As on date, the Bank occupies No-1 position among 5 RRBs sponsored by syndicate Bank in implementing the SHG linkage Programme.

The Bank is actively involved in the capacity building programme for the SHG women and has taken initiative in identifying the unemployed youth both men and women for Skill up gradation training programmes at Syndicate  institute of Rural Entrepreneurship development (SIRD),Kadapa and Kurnool,. Rural Development and Self Employment Training Institute (RUDSETI), Anantapur and Vetapalem.

Besides the above, to improve the capacity of the SHGs/SHG women, unemployed   youth who have   taken up different income generating activities, the Bank has made efforts for imparting skill upgradation training programmes through the Micro Enterprise Development Programmes (MEDPs) & Rural Entrepreneurship Development Programmes (REDPs) of NABARD.

Bank has organized exposure visits to the SHG women to different places to   create awareness with regard to marketing, packing etc.

Bank is observing 8th March of every Year as International Women’s Day.

Bank has taken special efforts for income generating activities to SHGs through special schemes like; Special Project-Dairy Development In Kadapa District.