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SUB RULE FOR GRANTING MEDIUM TERM NON AGRICULTURE LOAN TO HIGH SCHOOL/HIGHER SECONDARY SCHOOL STUDENTS FOR THE PURCHASE OF COMPUTER

Computer Desktop, Laptop, I Pad, Net Book brought for educational purpose, maintained with or without internet connection
The Student High School or Higher Secondary School going boy or girl of the Kasaragod District who has started Vidyanidhi Savings Bank account
Vidyanidhi Savings Bank Account Savings Bank account opened with any Branch of the Bank under the Vidyanidhi Savings Bank deposit scheme of the Bank
The Borrower Parent or Guardian of the student who are permanent residents of Kasaragod District employed in Government Establishment, public sector undertakings either in the home District or elsewhere, on permanent/temporary basis and /or having permanent source of income from business, agriculture and allied activities etc: applied for loan for purchasing computer on behalf of the student
The Employee Any person employed in Government Establishment, Public Sector Undertakings, eligible to obtain salary certificate from the Employer and agrees to offer the same as security to the Bank so as to enable the borrower for availing loan under this scheme
The Bank The Kasaragod District Co operative Bank Ltd. No.4367 having its Head Office at Kasaragod and Branches throughout the District
The Branch The Branch of the Kasaragod District Co operative Bank Ltd No. 4367 wherein the Borrower has applied for the loan
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 Co operative Societies Act 1969 as amended from time to time
Rules The Kerala Co operative Societies Rules as amended from time to time

AIM

The scheme intends to provide Medium Term Non Agriculture Loans to students of the Kasaragod District for the purchase of computer

ELIGIBILITY

High School/Higher Secondary School students who have started Vidyanidhi Savings Bank account with the Bank are eligible to be covered under this scheme

PURPOSE

For the purchase of computer for educational purpose

LIMIT

The maximum amount of loan that can be sanctioned under this scheme is Rs.50000/- or 90% of quoted amount of computer by a reputed dealer whichever is less.

MARGIN MONEY

10 per cent of quotation amount will be considered as margin money

PERIOD OF LOAN

The loan will be sanctioned for a period of three years as Medium Term Non Agriculture loan.

RATE OF INTEREST

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 is fixed as 10 % per annum. Additional interest @ 2% will be charged in the case of defaulted loan instalments

SECURITY

  • If the Borrower is employed, salary certificate of the Borrower with deduction agreement under Section 37 of Act and Rules whose take home salary is sufficient enough to the satisfaction of the Bank
  • If the Borrower is unemployed, salary certificate of the Employee with deduction agreement under Section 37 of Act and Rules whose take home salary is sufficient enough to the satisfaction of the Bank

REPAYMENT

The entire amount of loan along with interest will have to be repaid as EMI in 36 instalments (3 years)

GESTATION PERIOD

No gestation period is allowed under this scheme

OTHER REQUIREMENTS

  • The student will have to open Vidyanidhi account with an initial minimum deposit amount of Rs.500/- with the concerned Branch(Rupees five hundred only) at least 3 months before applying for the loan
  • There should be regular transaction in the said account

SANCTIONING OF THE LOAN

Loan will be sanctioned in the name of the Borrower (one of the parents or in the name of the guardian in the absence of parents due to what so ever reasons). For this the parent or guardian will have to open a SB account in the Bank Branch with a minimum balance of Rs.1000/- (Rupees thousand only).

MODE OF DISBURSEMENT

The Borrower will have to remit the margin money in advance to the Bank Branch. Branch will issue a DD for the full amount (including loan amount and margin money) in favour of the Dealer/Supplier of the computer

SANCTIONING AUTHORITY

After assessing the quality of application submitted in the prescribed application format, Branch Manager shall sanction loan subject to ratification by the Executive Committee of the Bank in the succeeding month itself

PROCEDURE OFAPPLICATION FOR LOAN

  • Student will have to open Vidyanidhi account with the concerned Branch at least 3 months before applying for loan with a minimum initial deposit of Rs.500/- (Rupees five hundred only)
  • Borrower will have to open SB account with the concerned Bank Branch with a minimum balance of Rs.1000/- (Rupees one thousand only)
  • Application in the prescribed format (annexure 1) will have to be submitted by the Borrower along with a copy of front page of the pass book of Vidyanidhi savings deposit of the concerned student

DOCUMENTS TO BE PRODUCED FOR AVAILING THE LOAN

  • Photo of the Borrower – 2 Nos.
  • Quotation from any reputed computer supplier/dealer
  • Duly filled loan application form
  • Salary certificate of the Borrower or the Employee with deduction agreement under section 37 of Act and Rules
  • DCRG of the Borrower or the Employee as the case may be
  • Xerox copy of the front page of Vidyanidhi Savings Bank account of the concerned student

The Borrower will have to execute an agreement agreeing with all aforesaid terms and conditions

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 and Guarantor from the date of such changes.

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