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The Bank The Kasaragod District Co operative Bank Ltd
The Borrower Primary Agriculture Credit Societies (PACS) or other Co operative Societies of the Kasaragod District having completed three years after registration and affiliated to the Bank
Board of Directors The Board of Directors constituted under the Byelaws of the Bank
Executive Committee The Executive Committee constituted under the Byelaws of the Bank
Act The Kerala Cooperative Societies Act 1969 as amended from time to time
Rules The Kerala Cooperative Societies Rules as amended from time to time


The scheme intends to provide Long Term Non Agriculture Loans to PACS and Other Co-operative Societies of the Kasaragod District affiliated to the Bank, for the construction / repair/renovation of buildings


PACS and Other Co-operative Societies of the Kasaragod District with a positive net worth are eligible to be covered under this scheme. Board of Directors of the Bank will have the liberty to entertain applications irrespective of PACS / Other Societies’ financial position, if the applications are found genuine in subsequent verifications


Loan can be utilised for the construction / repair/renovation of buildings as shown below

  • Office building
  • Godown
  • Shopping Complex
  • Market Outlet
  • Construction of building for any other legally permitted activities


The maximum amount of loan that can be sanctioned under this scheme for the construction of building is Rs.2 Cr. or 75% of the estimated cost of construction (as per the plan and estimate) whichever is less. In the case of repair/renovation, the maximum amount of loan that can be given is Rs. 1 Cr. or 75% of the estimated cost (as per the plan and estimate), whichever is less


Interest rate will be fixed by the Board of Directors of the Bank time to time in accordance with the directions from RCS/RBI/NABARD. At present, the rate of interest fixed is 10.25%. Additional interest @ 2% will be charged in the case of defaulted loan instalments


Loans will be sanctioned by the Executive Committee of the Bank. Branches on receipt of loan application will have to forward the same to Head Office after completing all the pre requisites at Branch level


Loan for construction of building will be disbursed in three instalments as shown below

Completion of basement of the building 20% of the loan amount
Completion up to sunshade level 40% of loan amount
Completion of the building 40% of loan amount

The second and subsequent instalments of the loan will be disbursed only after ensuring the utilisation of previous instalments by the Executive Officer of the Bank or any other Officer authorised by the Bank. On completion of the work of the building, a completion certificate from a qualified Engineer/Architect approved by the local authorities like Grama Panchayath or Municipality as the case may be will have to be submitted to the Bank. For renovation/repair, the loan shall be disbursed in two equal instalments on assuring the satisfactory utilisation


  • A copy of the plan of the proposed building approved by the local authority concerned
  • A copy of the building permit issued by the local authority
  • A copy of the plan and detailed estimate of the cost of construction prepared by a qualified Engineer not below the rank of an Assistant Engineer in Govt. Service
  • The Borrower will have to produce original and parent document to prove clear marketable title of the property which is proposed to be legally/equitably charged in favour of the Bank.
  • Tax receipt
  • Possession Certificate
  • Location Certificate
  • Eye sketch
  • EC for 13 years
  • Ownership Certificate (if own building available)
  • Valuation Certificate in respect of the property offered as security from a registered valuer or Tehasildar
  • Tentative balance sheet for the ongoing financial year
  • Audited balance sheet of the preceding financial year
  • Resolution of Board of Directors of the Borrower to apply for availing loan under this scheme
  • Acceptance letter of the Borrower agreeing with the terms and conditions of the scheme
  • Resolution of the Board of Directors of the Borrower Society authorising the President, Secretary and two other Board Members for executing the loan documents and availing loan


Loan availed for construction of Building/Godown/Shopping Complex/Market Outlet etc: will have to be repaid within 15 years in Equated Monthly Instalments (EMI). In the case of loan availed for repair/renovation purposes, the same has to be repaid within a period of 10 years


The entire loan amount will have to be repaid within a period of 10 or 15 years depending up on the purpose for which loan availed, in Equated Monthly Instalments (EMI). However the Borrower will have the option to avail EMI or diminishing mode of loan repayment as per their convenience. Repayment will have to be started after the gestation period or in the succeeding month after completion of the entire construction/repair/renovation work whichever is earlier.


Gestation period for six months from the date of disbursement of loan will be provided for the loans availed for construction purposes whereas three months repayment holiday is allowed in the case of repayment of loans availed for repair/renovation purposes. During this period only interest will have to be repaid in monthly instalments.


The building to be constructed/renovated/repaired will be the primary security. Mortgage of the site of the building/ landed property to the extent of 100% of the loan amount will be the collateral security for the loan. Further the Borrower is at liberty to offer security of adequate value not less than 150% of the loan amount in the form of Govt. Promissory notes, shares, debentures, gold ornaments or fixed deposits in Bank Notwithstanding anything mentioned above, the Bank/its Authorised Officer has the absolute right to reject any application for loan under the rules without assigning any reason

The Board of Directors of the Bank shall have the right to alter, modify and change these rules and it shall be binding on the Borrower form the date of such changes

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