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Services Credit

What's New

1. Introduction

The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan CreditCards to farmers on the basis of their holdings for uniform adoption by the banks sothat farmers may use them to readily purchase agriculture inputs such as seeds,fertilizers, pesticides etc. and draw cash for their production needs. The scheme wasfurther extended for the investment credit requirement of farmers viz. allied and nonfarmactivities in the year 2004. The scheme was further revisited in 2012 by a workingGroup with a viewto simplify the scheme and facilitate issue of Electronic Kisan Credit Cards.

2. Applicability of the Scheme

The Kisan Credit Card Scheme detailed in the ensuing paragraphs is implemented in our bank.

3. Objective / Purpose

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedureto the farmers for their cultivation and other needs as indicated below:

  1. To meet the short term credit requirements for cultivation of crops;
  2. Post-harvest expenses;
  3. Produce marketing loan;
  4. Consumption requirements of farmer household;
  5. Working capital for maintenance of farm assets and activities allied to agriculture;
  6. Investment credit requirement for agriculture and allied activities.

Note: The aggregate of components `a to e' above will form the short term creditlimit portion and the aggregate of components under `f’' will form the long term creditlimit portion.

Eligibility
  1. All Farmers – Individuals / Joint borrowers who are owner cultivators
  2. Tenant Farmers, Oral Lessees & Share Croppers
  3. SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.

Oral tenants can be eligible for loan only if land owners agree to become co-borrowers.In the accounts which are secured by liquid securities like FDR, NSC/KVP, etc., the cards to oral tenants can be issued without stipulating the condition of land owners to be made co-borrowers.Landless labourers, share croppers, tenant farmers and oral lessees can be issued HPGB Kisan Card (KCC) upto limit of Rs 50,000/- on the basis of an Affidavit, duly stamped as per the respective State Stamps rules.

Identification of the farmers will be done on the basis of photograph of borrowers along with signatures in case of literate borrowers and in case of illiterate borrowers; he shall be identified by his photo and thumb impressions. He shall put his thumb impressions in the presence of the Incumbent Incharge. Literate farmers will put signatures and illiterate farmers will put thumb impressions on the card which will be authenticated by the Incumbent Incharge of the branch and the card will be laminated.

1. PURPOSE:
  1. Productive purpose (production and investment credit) related to agriculture and allied activities. (At least 75% of the limit).
  2. Rural Housing related activities e.g. construction/purchase of new house, purchase of plot for construction of house, repair/ renovation/extension of existing house, providing sanitary latrine, toilet, bathroom, drinking water facility, etc.
  3. Consumption loan e.g. marriage, education, religious/family function, medical expenditure, consumer goods, car, two wheelers, etc.
2. Sub Limit:

25% of the overall limit or Rs 5 lakh which ever is lower may be given for non productive purposes which may comprise of maximum of Rs. 3 lakh for Rural Housing and maximum of Rs. 2 lakh for consumption. The apportioning of non productive loan between housing and consumption loan may be as per the requirement of the borrower. However, the restriction of maximum of Rs. 3 lakh for rural housing and Rs. 2 lakh for consumption loan will be maintained.

3. ELIGIBILITY:
  1. Only existing good agricultural land owner borrowers who have been continuously availing of any loan and having no NPA record for last Two years as on the date of application will be eligible. New farmers with evidence of satisfactory dealing with other banks for a minimum period of 2 years will also be eligible. If the land mortgaged is in the name of more than one farmer then all will be eligible jointly.
  2. The above condition of track record of 2 years may be relaxed in case of new farmers having good amount of deposit for the last 2 years provided: Loan is secured by 100 % liquid collateral security like Deposit/ NSCs, etc,

or

Loan is secured by 50 % liquid collateral security and 50% by mortgage of land (valued at 50 % of Bank Loan for Small/ Marginal farmers and 75% of Bank Loan for other farmers)

4. EXTENT OF LOAN: Maximum Rs.20 lakh
  1. Loan limit will be the lowest of:
  2. 5 times average annual (2 years) total income of the borrower.
  3. 50% of value of land to be mortgaged. Value of land may be done on the basis of current Circle rate/market rate whichever is lower.
  4. Total income will include income from agriculture and allied activities and nonfarm activities.
  5. If the number of borrowers is more than one then the sum total of their income will be considered.
  6. Minimum 75% of the limit should be sanctioned for productive purposes.
  7. 25% of the loan amount or Rs 5 lakh, whichever is lower may be given for non productive purposes. Out of this maximum of Rs. 3 lakh for rural housing activities and Rs. 2 lakh for consumption purposes may be sanctioned.
  8. The land taken from the relatives or friends including relatives or friends on oral tenancy basis may be included while reckoning the credit requirement of the farmer, provided the collateral security is sufficient to cover the total limit as per bank’s guidelines.
  9. Only consumption loan will not be sanctioned.
5. Nature of Loan:
  1. Entire limit of Rs 20 lakh may be allowed as cash credit limit for crop production, consumption needs (other than housing) & working capital for allied activities subject to restrictions as detailed in item no. 3(IV) &3(V) above.
  2. Need based term loan within overall ceiling of Rs 20 lakh including cash credit limit mentioned above & loan maximum up to Rs 3 lakh for Rural Housing. To encourage investment credit there will be no upper ceiling on investment loan.
6. RURAL HOUSING LOAN:
  1. If the land for which the house related loan is to be given is in the name of spouse then spouse will be co-borrower.
  2. Maximum age limit at the time of sanction of loan may be 60 years. Applicants above 60 years but maximum 65 years may be considered for sanction of loan if all the legal heir join as guarantors. Page 5 of 9
  3. Required approval from competent authority for plan, etc., will have to be obtained.
  4. Other requirements of Bank’s Housing Loan Scheme are to be fulfilled.
7. SECURITY NORMS:
  1. Primary Security: Hypothecation of assets created with bank loan.
  2. Collateral Security: Mortgage of land valued at 200 % of loan amount along with primary security, if any.
  3. Value of land may be done on the basis of current Circle rate/market rate whichever is lower.
  4. The prevalent procedure of verifying the fact that the bank’s charge has been noted by the Patwari in the related revenue records should be followed by the branches. In case of new farmers having good amount of deposit for the last 2 years, security will be as under:
  5. Loan is secured by 100 % liquid collateral security like Deposit/ NSCs, etc, or Loan is secured by 50% liquid collateral security and 50% by mortgage of land (valued at 50 % of Bank Loan for Small/Marginal farmers and 75% of Bank Loan for other farmers).
8. MARGIN :
  1. Extent of MarginaUpto Rs.2 lakh Nil
  2. Above Rs.2 lakh & above 10% For cash credit limit Borrower’s stake may not be insisted in cash. Cost of family labour and inputs of the farmer may be treated as borrower’s stake. However, for term loans margin may be maintained as stipulated above.
S.NO. PARTICULAR DETAILS IN BRIEF
1. Purpose TO MEET ALL TYPES OF PERSONAL NEEDS
2. Eligibility Only HPGB account holders and Existing Housing Loan Borrowers with a good track record of two years with minimum net monthly income of Rs.10000/= per month.
3. Extent of loan Minimum  Rs.50000/=  Maximum  Rs.1000000/-
4. Nature of loan   Term Loan/ Overdraft
5. Margin NIL
6. Security  Suitable gurantee acceptable to Bank
7. Rate of interest As per bank guide lines issued/in force.
8.. Loaning powers As per bank guide lines issued/in force.
9. Repayment of period Maximum repayment  period  60 EMI for Term Loan  while for OD  60 months by reducing Drawing Power (DP) equivalent  to EMI at the beginning of every month
10. Documentation Loan application form,Term Loan/ Overdraft Agreement,Guarantee Deed,Irrevocable letter of authority (in duplicate) authorizing the employer to remit salary/installment and other amount payable to the Bank cum letter of acknowledgement from employer,Affidavit declaring (a) details of existing borrowings from HPGB & other financial institutuions; and (b) that no further loan will be raised either from HPGB or any other bank/FIs/NBFCs under the same/similar scheme till full repayment of personal loan from HPGB,Statement of account of prospective borrower minimum for last six month,For Salaried – Latest Salary certificate/Form No. 16 duly authenticated by the employer. For Non salaried – Copy of receipted ITRs for the last three financial years,Advance cheques (P.D.Cs) with letter of deposit where check off facility is not available.

Purpose

For purchase of new Two wheelers viz.: Scooter(s), Motor cycle(s), Scooterrete (s), Moped(s), (subject to Registration of vehicle with RTO).

Eligibility

Existing HPGB customers with at least 6 months satisfactory transactional record OR new customer with satisfactory track record of last one year with other Bank/FI in the age group of 18 years and 60 years holding a valid driving licence.

Salaried individuals drawing salary from our bank or under check off facility from the employer.

Students, 18 years and above till gainfully employed, with salaried parent as co-borrower drawing salary from our bank; Business concerns (Corporate or non –corporate)

Income Criteria

Minimum Net Monthly Income of Rs.10,000/- p.m.

In case of students, Income/salary proof of parent/guardian who will be co-borrower be considered.

Income of spouse can be taken into consideration for determining the income criteria provided satisfactory proof of income is produced.

Income of business concerns be verified from Income Tax Returns filed and challans for Tax Deposited.

Quantum Of Finance

Max Rs.1.0 lac. Above Rs.1.0 lac by RM.

Margin

Where salary is being disbursed through the concerned bank branch and/or Check off facility.

10%

Business concerns

25%

Security

Hypothecation of 2 wheeler financed from bank loan

Guarantee acceptable to bank as per guidelines

Repayment (Maximum)

For Scooter and Motorcycle – 60 EMIs

For Scooterrete – 30 EMIs

For Mopeds – 24 EMIs

Prepayment Charges

Nil

Rate Of Interest

12.60%-14.10% (Terms and Conditions follows)

Processing Charges/ Upfront Fee

Rs.275/-

Documentation Charges

Rs.275/-

Above are only salient features of the scheme. For details please contact nearest branch

`HPGB Saraswati` Education Loan Scheme For Students Pursuing Higher Education In India.

Objective

To provide financial support to meritorious students for pursuing higher education in India.

Students Who Secure Admission In Institutes As Under

  • Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
  • Courses like ICWA, CA, CFA etc.
  • Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
  • Regular Degree/Diploma courses like Aeronautical, pilot training, shipping Nursing or any other discipline approved by Director General of Civil Aviation/Shipping/ Indian Nursing Council or any other regulatory body as the case may be.
  • Advance Diploma in Banking Technology offered by PNB IIT Lucknow.
  • Approved courses offered in India by reputed foreign universities.
  • Research Programmes recognized by designated academic authority/ regulatory body.

Purpose

Fee payable to college/ school/ hostel

Examination/ Library/ Laboratory fee.

Insurance premium for student borrower, if applicable.

Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.

Purchase of books/ equipments/ instruments/ uniforms.

Purchase of computer at reasonable cost, if required for completion of the course.

Any other expense required to complete the course - like study tours, project work, thesis, etc.

Eligibility

Should be an Indian national.

Should have secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).

Cases of Management Quota may be considered on merit basis;

Quantum Of Finance

Need based Finance subject to repaying capacity of the parents/students ( after completion of course) ;.

Reimbursement of fees paid within six months may be permitted on individual merits of the case.

Margin

Up to Rs. 4 lac - NIL

Above Rs. 4 lac - 5%

Scholarship/ assistantship may be considered in margin.

Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security

Upto Rs.4.0 lacs: Parent(s)/guardian be made joint borrower (s)

Upto Rs. 7.50 lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.

Above Rs.7.50 lacs: Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable to bank.

Repayment (Maximum)

Maximum upto 15 years

Repayment Holiday/ Moratorium

Course period + 1 year

Prepayment Charges

NIL

Rate Of Interest

11.0% -13.0% (Terms and Conditions follows)

Processing Charges/ Upfront Fee

Nil

Documentation Charges

For loan upto Rs. 4 lacs- Rs. 270/-

For loan over Rs. 4 lacs- Rs. 450/-

 

Education Loan Scheme For Students Pursuing Higher Education Abroad

Objective

To provide financial support to meritorious students for pursuing higher education abroad.

Students Who Secure Admission In COURSES As Under

  • Graduation: For job oriented professional/technical courses offered by reputed universities.
  • Post graduation: MCA, MBA, MS, etc.
  • Courses conducted by CIMA- London, CPA in USA etc.
  • Degree/Diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in abroad for the purpose of employment in abroad.
  • List of Premier Foreign Universities and Educational Institutes is available at branches.


Education loan to students for pursuing Diploma & Certificate courses other than aeronautical, pilot training, shipping etc from abroad, may be considered, where the loan is backed by liquid security valuing 125% of loan amount in the shape of FDRs/ NSCs/ surrender value of Life Insurance Policies along with establishing the financial credentials of family members (either joint borrower or guarantor) subject to the condition that the said course(s) is recognized/ accredited one.

Purpose

  • Fee payable to college/ school/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Travel expenses/ passage money for studies abroad.
  • Life Insurance premium for student borrower, if applicable.
  • Caution deposit, Building fund/refundable deposit supported by Institution bills/ receipts.
  • Purchase of books/ equipments/ instruments/ uniforms.
  • Purchase of computer at reasonable cost, if required for completion of the course.
  • Any other expense required to complete the course - like study tours, project work, thesis, etc.

Eligibility

  • Should be an Indian national.
  • Should have secured admission to a higher education course in recognized institutions Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or Equivalent).

Quantum Of Finance

  • Need based Finance subject to repaying capacity of the parents/students with margin.
  • Reimbursement of fees paid within six months may be considered on individual merits of the case.

Margin

  • Up to Rs. 4 lac - NIL
  • Above Rs. 4 lac - 15%
  • Scholarship/ assistantship be included in margin.
  • Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security

Upto Rs.4.0 lacs: Parent(s)/guardian be made joint borrower (s)

  • Upto Rs. 7.50 lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
  • Above Rs.7.50 lacs: Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable to bank.

Repayment

  • maximum upto 15 years

Repayment Holiday/Moratorium

Course period + 1 year

Prepayment Charges

Nil

Rate Of Interest

11.0% -13.0% (Terms and Conditions follows)

Processing Charges/ Upfront Fee

Upfront fee @ 1% with a minimum of Rs.10,000/- be recovered which shall be refunded after first disbursement has been made in the Account towards fee/ other expenses sanctioned for Education loan ensuring that the student has taken admission and joined the institute.

Documentation Charges

For loan upto Rs. 4 lacs- Rs. 270/-

For loan over Rs. 4 lacs- Rs. 450/-

 

`HPGB PRATIBHA`– Education Loan For Premier Institutes In India

Objective

The Scheme `HPGB PRATIBHA` aims at providing financial support to meritorious students who get admission in Premier Institutes in India. (List of Institutions  will be available at nearest branch)

Purpose

  • Fee payable to college/ school/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Life Insurance premium for student borrower, if applicable.
  • Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
  • Purchase of books/ equipments/ instruments/ uniforms.
  • Purchase of computer, at reasonable cost, if required for completion of the course.
  • Any other expense required to complete the course - like study tours, project work, thesis, etc.

Eligibility

  • Should be an Indian national.
  • Should have secured admission in Regular full time Degree / Diploma courses offered by Premier Institutes, which include (i) Business Schools, (ii) Engineering Colleges, (iii) Medical Colleges and other reputed Colleges.

 

Quantum Of Finance

  • Need based Finance subject to repaying capacity of the parents/ students (after getting employment);
  • Reimbursement of fees paid within six months may be considered on individual merits of the case.

Margin

Up to Rs. 4 lac - NIL

Above Rs. 4 lac - 5%

Scholarship/ assistantship may be considered in margin.

  • Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security

Co-obligation of parents/guardian as joint co-borrowers.

Repayment (Maximum)

maximum upto 15 years

Repayment Holiday/ Moratorium

Course period + 1 year

Prepayment Charges

Nil

Rate Of Interest

10.0% (Terms and Conditions follows)

Processing Charges/ Upfront Fee

Nil

Documentation Charges

For loan upto Rs. 4 lacs- Rs. 270/-

For loan over Rs. 4 lacs- Rs. 450/-

Above are only salient features of the scheme. For details please contact nearest branch