Hypothecation/mortgage of immovable properties (Land & Building) pledge of gold ornaments, personal surety, bank Fixed Deposit Receipts, Government securities etc are generally accepted as security.

Advances against land & Building are extended as registered deed or by creating a valid equitable mortgage by deposit of title deeds.

In personal surety loans, the salary certificate produced by the applicant should be verified and should collect the confirmation regarding issuance of the certificate from the issuing authority.

With regard to Gold Loans and Deposit Loans Branch Manager/Authorised officer should verify the ornaments/FD Receipts before sanctioning the advance. The ornaments/FD Receipts should remain in the effective joint custody of two responsible officials.

Valuation of the property to assess the present market value of the property offered as security should be specific with separate value for land, Building, Amenities and services. It is also required to show the marketability of the property and the value that can be fetched in case of distress/forced sale.

Advance against:

• Gold Loan - 70% of the Market Value of the Gold
• Land & Building - 50% to 70% of valuation certificate

Area of land below 3 cents shall not be accepted as security. Shop rooms can be exempted from the minimum area clause.

Loan will be granted to 'A' class members of the Bank and the ratio of the share linking with advances will be 5% and 2.5% for intangible and tangible securities respectively.

Loan Application shall be submitted in prescribed form with the following documents.

• Original title deed, prior deed
• Land Revenue Tax Receipt from Village Office
• Building Tax Receipt from Corporation
• Valuation Certificate of approved valuer of the Bank
• Possession Certificate of the property from Village Office
• Revenue Recovery Certificate (if loan amount exceeds 10 lakhs)
• Salary Certificate and salary deduction agreement
• Certificate to prove income
• Documents to prove the utility of loan amount
• Copy of Sales Tax and Income Tax assessment (Copy of IT return for 2 years if loan amount 10 lakhs or above)
• Copy of Adhar, copy of Election Identity Card, copy of Identification documents to prove identity and address of the customer, Pan card(if loan amount exceeds 10 lakhs)
• Attested copy of passport size photo
• CA attested copy of P & L and balance sheet for last 3 years (for business loans only)

In respect of loans sanctioned for business purposes, the details of business financial statement, sales tax registration details etc. should be called for, wherever necessary. Stock statement should be called for in the case of sanction and renewal of overdraft facility.

Expense of Legal fees, Valuation fee and processing charge etc should be recovered from the borrower as per the rate fixed by the Board of Directors from time to time.

Large borrowers accounts should be reviewed constantly and periodical inspection of stocks.

• Call financial/stock statements and verification of such statement vis-a-vis physical stock by the authorized officials
• Review of the operations
• Review of turnover in account
• Should never allow withdrawals without renewal
• Withdrawal limit fixed to 95% of loan amount