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SUB RULE FOR GRANTING MEDIUM TERM LOANS TO INDIVIDUALS FOR ESTABLISHING NON CORPORATE SMALL BUSINESS UNITS/MICRO ENTERPISE UNDER PRADHAN MANTRI MUDRA YOJANA (PMMY)

TERMS USED

The Bank The Kasaragod District Co operative Bank Ltd.No.4367
The Branch The Branch of Kasaragod DCB wherein the Borrowers apply for the loan
The Borrower A permanent resident of the Kasaragod District willing to start Non Corporate Small Business Units (Micro Enterprise) with a low investment cost who has approached the Bank for availing a loan for the same
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 loans to those common men and women of the Kasaragod District who wish to establish small business under Manufacturing/Trading/Service sector with an aim of improving the quality of life of Entrepreneur and to contribute sustainability to job creation in the economy

ELIGIBILITY

The Borrower

  • Should be a permanent resident of the Kasaragod District
  • Should be willing to start a Micro Enterprise/Business under Manufacturing/Trading or Service sector
  • Should not be a defaulter to any Bank/Financial Institution
  • Should be willing to undergo training related to the Micro business established

It is desirable that the Borrower has experience in the field of the proposed of Micro Enterprise /Activity

PURPOSE OF LOAN

The loan amount shall be utilized for establishing a small Non Corporate Business /Micro Enterprise under Manufacturing/Trading or Service sector which offers a sustainable income to the Borrower and contributes to the development of the District’s Economy. List of various activities that can be started under this scheme is given as annexure

AMOUNT OF LOAN

The maximum amount of loan that can be sanctioned under this scheme is Rs.50, 000/- per Borrower. In case purchase of machinery /equipments are involved; 95% of the quotation amount or Rs.50, 000/- whichever is less will be given as loan

BENEFICIARY CONTRIBUTION

5% of the cost of proposed activity shall be met by the Borrower

INTEREST RATE

Interest rate will be fixed by the Board of Directors of the Bank from time to time in accordance with the directions from RCS/RBI/NABARD. At present the ROI is 10.5%. Additional interest @ 2% will be charged in the case of defaulted loan installments

PERIOD OF LOAN

The loan will be sanctioned for a period of 5 years as medium Term Non Agriculture Loan wherein repayment will have to be done in monthly installments (60 months)

GESTATION PERIOD

No gestation period will be allowed for loans given to those activities wherein income is readily available. However a gestation period of 60 days will be given for other activities

SECURITY

Hypothecation of assets created out of the loan amount will form the security of loan sanctioned

SANCTIONING AUTHORITY

The loan will be sanctioned by the Branch Manager subject to ratification by the Executive Committee of the Bank

DOCUMENTS TO BE PRODUCED FOR AVAILING THE LOAN

  • Identity/address proof of the Borrower
  • Pass port size photograph of the Borrower – 2 Nos:
  • Quotation of machinery/other items to be purchased

DISPUTES

All disputes shall be dealt with as contemplated under the relevant provisions of Act and Rules. The Borrower shall agree to be bound by the provisions regarding Arbitration in Act and Rules in the case of any dispute The Board of Directors of the Bank shall have the right to alter/modify or change these rules and it shall be binding on the Borrower from the date of such changes

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