OTHER ADVANCES




OTHER ADVANCES




























P&SB LOAN SCHEME FOR TRAINING, SKILL UPGRADATION OF CONSTRUCTION WORKERS

There are millions of workers engaged by the construction industry in our country and majority of them are unskilled/semi-skilled. To upgrade and develop the skill of such workers, Construction Industry Development Council (CIDC), a body set up under the Planning Commission and Indira Gandhi National Open University (IGNOU) have together developed a training, testing and certification scheme based on pre-diploma programme. Our Bank has decided to introduce the new scheme to extend financial support to construction workers on the following lines:

Objective To facilitate skill upgradation and career progression for skilled/semi-skilled workers employed by construction companies and engaged at worksite
Eligible Courses  Pre-Diploma Courses offered by institutes/universities , which are of short duration ,upto a maximum of six months and are approved by CIDC/IGNOU.
Eligibility  Semi-skilled/Skilled workers employed by construction companies and employees covered under EPF are eligible. The eligible workers should be holding trade certificate issued by Industrial Training Institutes (ITI). Those who have availed loan and completed short-course would be eligible to apply for loan for taking up another Pre-Diploma Course after repaying the earlier loan. The minimum age of worker should be 18 years and maximum age if any ,prescribed by the course provider (may not be exceeding 45/50 years) . The employer of construction industry should be associate /member of CIDC.
Quantum of loan  Maximum of Rs.15000/-
Margin    Nil 
Interest  PLR 
Guarantor  The guarantee of the employer to be obtained. 
Sanction/Disbursement  Loan to be sanctioned at branch level and to the extent possible payments would be made direct to the institutes offering the courses. 
Repayment    Loan to be repaid in 24 months alongwith interest from the date of disbursement. The employer to give an irrevocable undertaking to deduct the installments from the salary/wages payable to the workers and remitting it to the Bank.
Misc.  Persons who have undergone Pre-Diploma Courses can pursue further studies leading to award of Diploma in Engineering/Degree in Engineering offered by IGNOU or other institutes/universities. They would be eligible for bank loans under the regular Education Loan Schemes, in case they want bank's assistance to pursue such courses.

 

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P&SB SCHEME FOR EATING-JOINTS

We are continuously receiving feedback/suggestions from our field functionaries to modify the lending norms of existing loan schemes and introduce new special schemes to cater the needs of various types of customers .It has now been decided to launch the special scheme for extending financial support to Eating Joints, Restaurants, Bakeries etc. on the following lines:

Purpose To extend credit to Eating-Joints viz..Restaurants, Bakeries, Institutional Canteens Sweet shops Meat shops Ice-cream Parlours etc.
Nature of credit  Working capital Term loan .
Quantum of credit  Equivalent to 4 months sale (average of 12 months) .In case of new entrepreneurs, on the basis of projections .The maximum extent of credit would be Rs.5 lacs for individual borrowers and Rs.10 lacs for partnership firms/Cos.
Margin 15-25 %
Rate of Interest  For loan upto Rs.2 lacs – PLRF or loan above Rs.2 lacs - PLR+1% 
Guarantor  Guarantee of an independent person of good integrity and sound means acceptable to Bank .
Security Collaterals valuing atleast 150% of credit limit where property is to be taken as security and 100% in case of NSCs/Life insurance policies Govt. Securities etc.
Repayment  60-72 EMIs .Daily cash collection to be deposited with the Bank 
Misc.  The Entrepreneurs should obtain license from Health Deptt. and registration under Shop Establishment Act wherever applicable 

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P&SB SPECIAL SCHEME FOR INSURANCE AGENTS

Eligibility Agents of LIC of India and other agents of companies of life and general insurance sector and those engaged in promoting the investment schemes of Post Office /Govt. securities / UTI / Mutual Funds etc.who have been receiving the commission for atleast five years on regular basis .
Purpose To meet any personal need .
Quantum of credit Clean O.D.limit upto the extent of three months commission being credited in the account with the branch subject to a maximum of Rs.50000/-
Rate of interest PLR+2%
Collaterals Nil
Guarantee Third party guarantee acceptable to Bank 
Processing fee Nil
Misc. The limit to be renewed on regular basis .

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P&S Bank Artisan Credit Card (ACC) Scheme

Objective To provide adequate and timely assistance to artisans for their investments needs as well as working capital equirement. The scheme would be operative in rural and urban areas
Eligibility  All artisans engaged in production/manufacturing process and otherwise eligible for credit facilities under any of the existing bank schemes would be eligible. Preference would be given to artisans registered with Development Commissioner (Handicrafts) and thrust in financing would be on clusters of artisans who have joined to form Self Help Groups (SHGs). Beneficiaries of other Govt. sponsored loan schemes will not be eligible for coverage under ACC scheme.All existing artisans borrowers of the Bank enjoying credit facilities upto Rs.2 lakh and having satisfactory dealings with the Bank will be eligible.
Quantum of finance  The credit limit would be fixed on assessment of working capital requirements as well as cost of tools and equipments needed for carrying out manufacturing activities. Working capital requirements would be assessed as per Nayak Committee recommendations . The maximum limit to be sanctioned under the scheme would be Rs.2 lakhs.The working capital limit would be as revolving cash credit to provide any number of drawals and repayments within the limit. However, a repayment schedule would be fixed for the portion of loan availed for the purchase of tools and equipments
Margin For credit up to Rs.25000/- no margin is required but for credit above Rs. 25000/- a margin of 25% would be kept
Security Hypothecation of assets to be created with Bank finance.
Rate of interest  PLR
Validity/Renewal of limit  The credit card would be valid for 3 years subject to annual review but the borrower would not be required to submit any financial statement Request for enhancement of limit may be considered at the time of review within the ceiling of Rs.2 lakhs. No fees will be charged at the time of review/renewal of card.
Issuance of cards The beneficiary would be issued a photo card indicating sanctioned limit and validity period of credit facility. He/She would also be issued cheque book specially marked "ACC Account" .
Insurance As per existing guidelines.
Guarantee Cover The guarantee cover would be available under the Credit Guarantee Scheme introduced by Credit Guarantee Fund Trust for Small Industries (CGTSI) i.e. in terms of P. S. Cir. No.267 dated 09-01-2003 .
Miscellaneous Artisan Credit Card (ACC) accounts would be maintained in a separate ledger and statement of account pass book to be issued to ACC card holders.· Stock statements are not to be submitted by the beneficiaries but monitoring of the account operations be ensured through quarterly/half yearly inspection.· Processing fee is to be charged as per existing guidelines.· Cost of photo for issue of card to be borne by the Bank.· Finance under the scheme to be reported under Priority Sector under the head SSI and all such accounts to be covered under Weaker Section.

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P&S Bank Udyogini Scheme

Objective

To encourage the women entrepreneurs to avail the loans on liberal terms and exclusive catering of credit under Direct agriculture activities, Tiny SSI sector, Business entreprises, Retail traders, Professional and Self employed etc.

Eligibility

Women enterprises consisting of all units managed by one or more women entrpreneurs in propreitory concern or in which she/they individually or jointly have a share capital of not less than 51% as partners/share holderes /directors of privite limited company/members of co-operative soceity.

Quantum of loan/limit

Loan/limit would be assessed on case to case basis and depending upon the purpose of loan

Margin

No margin for loans upto Rs.25,000/- and for the loans above Rs.25,000/- margin ranges from 15-25% depending upon th purpose and quantum of loan

Rate of Interest

Upto loan of Rs.2 lacs PLR (11.50%)Loan above Rs.2 lacs as per credit rating minus 0.50% subject to Minimum of PLR

Repayment

The Repayment period for the term loans is to be fixed depending upon nature of activity and useful life of assets purchased with bank loan but not to exceed 7 years with a maximum moratorium period of 12 months.

Security

Upto Rs.25,000/- No collateral security only hypothecation of assets created out of the bank funds be taken as a security. Above Rs. 25,000/- (i) Pledge of/Hypo. of assets created out of bank loan (ii) Guarantee of spouse or third party (iii) Collateral security in the form of land/building property atleast double the value of loan ( including the value of assets in case of term loan)• If the SSI cases are covered under Credit Guarantee Fund Scheme for Small Industries, No collateral Security is required for loan/limits upto Rs. 25 lacs.

Purpose of loan

Loan limit may be given for any productive purpose by way of term loans or working capital

Selection of Borrower

The borrowers shall be selected as per the definition of the women entrepreneurs mentioned in the eligibility criteria. Preference be given to women entrepreneurs trained for the activity undertaken.

Processing Fee / Upfront fee

No processing fee or upfront fee would be levied

Insurance

The assets crested out of loan should be adequately insured as per the bank policy

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P & S BANK DIAMOND KRISHI CARD

The Bank has introduced a unique P&S Bank Diamond Krishi Card (DKC) Scheme to enhance the flow of credit to agriculture sector and to provide more credit and better facilities to KCC holders/ farmers. The features of P&S Bank Diamond Krishi Card is as under :

Eligibility

An existing P & S Bank KCC holder with satisfactory track record for atleast 2 years and with minimum holding of 5 acres perennially irrigated agricultural land, is eligible for coverage under the Scheme.

Quantum of Loan :

Upto Rs. 1,00,000/- per acre of irrigated land holding or 50% of market / realizable value of agricultural land whichever is less ; subject to the maximum of Rs. 10 lacs.

Purpose of Loan :

The credit limit can be utilized/disbursed for Short Term Agricultural Operations, for agricultural Investment as well as for consumption needs, with following stipulations: Short Term Credit Needs : ST-1 For normal production credit-upto Rs. 20,000/- per acre (irrigated) land ST-2 For contract farming - upto Rs. 40,000/- per acre of irrigated land depending upon the variety / type of crop / plantation grown by the farmers . ST-3 For and against godown receipts of produce of the Farmers-upto Rs.20,000/- Per acre Investment Credit : For any one or more of the following purposes - For purchase of agricultural implements, installation of minor irrigation / drip irrigation systems, land development, purchase of farm animals and other allied activities, purchase of two wheelers/ Jeep for use at farm, construction of rural godowns / storage for farm inputs or products, for setting up vermi composting unit for own use, etc. with a minimum margin of 15% in each case. The maximum loan under this category is Rs. 6.00 lacs (60% of the credit limit under DKC) depending on the cost of project.Consumption Needs : For any consumption needs subject to a maximum of Rs. 5000/- per acre to be repaid in monthly / quarterly/ half yearly instalment within a period of 3 years-At any one given time, the farmer can avail only upto Rs. 40,000/- per acre under short term credit (ST-1, ST-2 and ST-3) and avail not more than two term loans under Investment Credit.-Each short term limits should be brought to credit balance atleast once in a year while the investment loan should be recovered in suitable installments (monthly / quarterly/ half yearly) within a period of five years including the moratorium period.-The farmer can avail loan for other permissible activities under the scheme after adjustment of earlier loan.

Rate of Interest

For limits/loans granted under the scheme, the interest is in accordance with the purpose for which the short term / investment loan have been granted.

Security :

The primary security of crops, godown receipts, assets purchased with Bank loan to be hypothecated.

Collateral security

Agricultural land atleast double the value of loan/ limit sanctioned as per H.O. guidelines.

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P & S Bank Special Scheme For Loan Against Rent Receivables

GENERAL PUBLIC :

Purpose of the credit To extend credit to owners of commercial/ residential premises against rent receivables for meeting business requirements/personal expenses (marriage of self/children etc)/repair (renovation/alteration/ addition) of the building.
Eligibility Land lords/owner's of commercial/ residential property who have rented their premises to Govt. Deptt. / PSUs / Pvt. Or Public Ltd. Cos. / MNCs / Embassy or any other Organization of repute.
Quantum of Credit Maximum 80% of rent receivable during the period of tenancy or 120 months whichever is lower, less income tax payable and any other local tax/maintenance charges to be paid by landlord/tenants, if any as per lease agreement.

Amount of credit as calculated above should not exceed 70% of the market value of the property to be mortgaged. However, any other advance already taken against rent receivables should also be deducted from permissible limit.
Rate of interest BPLR -1.0% p.a
Collateral Security 1. Preferably equitable mortgage of property being given on lease & against which loan for rent receivables requested.

2. If the above-referred property not available as security, then another property of good saleable value of equivalent amount be obtained.
Guarantor The spouse or the legal heirs of the borrower.
Processing Charges One time @1% of the sanctioned amount.
Prepayment charges 1% of the outstanding balance.
Repayment By monthly Cheque/DD/Pay Order issued by the tenant/lessee in favour of owner/lessor. It is to be ensured that entire outstanding gets adjusted within the period of rent/lease agreement.
Comfort letter A letter of comfort stating irrevocable undertaking from the tenant/ lessee that Cheque/DD of rent payable every month will be sent directly to the Bank mentioning the loan account no. of the lessor during the currency of tenancy period.
Other Condition 1. There should be written and registered Rent/lease agreement between the owner and authorized official of the tenant/lessee. The agreement should specify the period of tenancy, monthly rent, advance rent payable if any and who is liable to pay maintenance charges/municipal taxes etc.

2. The lease agreement should stipulate that landlord will not get the premises vacated till the liquidation of loan amount.

3. There should be specific mention in the lease agreement to the effect that the landlord will not raise loan against such property from other banks without written permission from our bank.

4. A tripartite agreement, as per Draft placed at Annexure-II, should be got executed among the concerned parties viz. the landlord on one part, the tenant on the second part and the bank on third Part along with other required documents.

5. The property, being accepted as security, should not be owned by minor(s), either wholly or jointly with others.

6. If rent is received from the associate/ allied concerns then such cases will not be covered under the schemer.


LANDLORDS OF PSB BANK PREMESIS:

Purpose of the credit To extend credit to owners of our bank premises against rent receivables for meeting business requirements/personal expenses (marriage of self/children etc)/repair (renovation/alteration/ addition) of the building.
Eligibility Land lords/owner's of our banks premises
Collateral Security Equitable mortgage of property being given on lease & against which loan for rent receivables requested.
Quantum of Credit Maximum 80% of rent receivable during the period of tenancy or 120 months whichever is lower, less income tax payable and any other local tax/maintenance charges to be paid by landlord/tenants, if any as per lease agreement.

Amount of credit as calculated above should not exceed 70% of the market value of the property to be mortgaged. However, any other advance already taken against rent receivables should also be deducted from permissible limit.
Rate of interest BPLR- 1.5% p.a
Guarantor The spouse or the legal heirs of the borrower.
Processing Charges One time @1% of the sanctioned amount.
Prepayment charges 1% of the outstanding balance.
Repayment Direct from the lease rental to be paid by the bank It is to be ensured that entire outstanding gets adjusted within the period of rent/lease agreement.
Other Condition 1.There should be written and registered Rent/lease agreement between the owner and authorized official of the tenant/lessee. The agreement should specify the period of tenancy, monthly rent, advance rent payable if any and who is liable to pay maintenance charges/municipal taxes etc.

2.The lease agreement should stipulate that landlord will not get the premises vacated till the liquidation of loan amount.

3.There should be specific mention in the lease agreement to the effect that the landlord will not raise loan against such property from other banks without written permission from our bank.

4.An affidavit to be obtained that during the currency of Bank,s loan the land lord will not sell the property.

5.The property, being accepted as security, should not be owned by minor(s), either wholly or jointly with others.

6. Existing cases sanctioned by HO GA Deptt. would continue as it is and would be monitored by them. No conversion will be allowed till full and final adjustment of account.

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P&SB Scheme for Working Capital requirement for Retail Traders

Details Existing guidelines Amended guidelines
a)Quantum Of credit Maxm.Rs.30.0 lac Rural Areas - Maxm.Rs.10.00 lac
Semi Urban/ Maxm.Rs.20.00 lac
Urban
Metropolitan - Maxm.Rs.30.00 lac
b)Rate of interest a) Upto Rs.2.0 lac - BPLR
b) Above 2.0lac and -- upto Rs.30.0 lac - 1556 dt.18.2.05( As per credit rating) 		Upto Rs.30.0 lac -BPLR
c) Stock Statements a) For limit upto Rs.10.0 lac stock
statement to be submitted once in a year
b) For limit above Rs.10.0 lac and upto Rs.30.0 lac on monthly basis 		For limit upto Rs.30.0 lac stock statement to be submitted once in a year

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DOCTORS SPECIAL

SALIENT FEATURES OF THE SCHEME :

Eligibility Doctors having minimum qualification MBBS / BDS.
Purpose

 Setting up / acquiring / renovation / expansion of clinics, Hospitals / Pathological / Clinical labs , Scan / Diagnostic Centers , Nursing Homes, Sanatorium etc and purchase of vehicles, ambulances, computers etc.
Type of credit

 Term Loan
Quantum of advance Maximum upto Rs. 1 crore
Margin 15%
Security (i) Movable Assets : Hypothecation of assets acquired.
(ii) Immovable Assets : Equitable / legal mortgage of property in the name of self / spouse / major children.
Collateral Security : (i) Upto Rs.25 lac – NIL if covered under CGTMSE scheme of SIDBI for coverage of cases upto Rs. 1 crore after payment of guarantee fee.
(ii) Rs.25 lac upto Rs.1 crore – Collateral required.
Rate of interest (i) Upto Rs.25 lac : BPLR-2.50% ( floor rate 10.50%p.a.)
(ii) Rs.25 lac upto Rs.1 crore : BPLR-2.00% ( Floor rate 11.0% p.a.) (Present BPLR 13.50%)
Guarantee
  • Upto Rs.25 lac: NIL if covered under CGTMSE
  • Spouse may be taken as co borrower
  • Rs.25 lac and upto Rs.1 crore : 3rd party guarantee of substantial means
Repayment Total repayment in maximum 5 to 7 years
Prepayment The prepayment facility is allowed. No charges beyond one year.
Additional Benefit 50% concession on locker rent for self or spouse for first two years, who avail loan under this scheme

* for details please contact our nearest branch.

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