The Madanapalle Co-Op Town Bank Ltd.

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Name of the Loan Loan against Property (Term Loan & OD)
Nature of Loan Purpose neutral credit facility
Eligible Persons Individuals and Non-Individulas
Purpose For any genuine purpose including working capital (real estate should be avoided)
Interest Reset In respect of ODs interest rate will be reset at the time of renewal, in lying with the then prevailing rates of interest.
Maximum Amount Rs 40.00 lakhs
Repayment Schedule Maximum 60 months for loans and yeraly renewal for OD.
Processing Charges 1 % on loan amount + GST
Security
  1. For loans up to Rs.40 lakhs -Minimum 150% security by way of immovable properties
  2. For OD (Working capital) Rupees up 10 lakhs- Minimum 150% security by way of immovable properties
  3. For OD (Working capittal) Above Rs.10lakhs up to Rs.25 lakhs-100% Security by way of immovable properties plus Hypothecation of stock and Receivables with 30% margin
  4. For ODs above Rs.25.00 lakhs : Minimum 150% security by way of immovable properties
CoObligation Spouse and any of major children (any deviation can be permitted by sanctioning authority)
Other Conditions
  1. Loan/OD to sanctioned only based on the repayment capacity of the borrower
  2. Loans up to Rs.10.00 lakhs income can be assessed by BM with documentary evidence
  3. For Loans above Rs.10.00 lakhs , income tax returns to be obtained
  4. All Securities to be insured.
  5. Vacant sites should be avoided
  6. These loans should not be allowed against D.form Pattas.
  7. No third loan should be sanctioned under this scheme to the same borrower
  8. Second loan can be sanctioned only after one year of availment of first loan, subject to satisfctory repayment of the first loan and subject to assessment of repayment capacity for both loans beyond doubt. Sanctioning authority should exercise caution while sanctioning such loans
Name of the Loan Gold Term Loan
Eligibility Individuals or firms who can offer Gold Ornaments for availing loans
Purpose Business purpose or personal needs or any other genuine purpose
KYC Normal KYC guidelines and insist on SB/CD account for the Customers
Quantum of the loan As per the scale of finance of per gram rate advised by central office or the amount requested by the borrower ,subject to Repayment Capacity of the borrower, which ever is less.

Maximum Loan limit Rs. 50,00,000
Repayment Maximum 60 months in monthly installments. Lesser repayment shedule may also be considered by the sanctioning authority as per the customer's request
Repayment Capacity Branches have to access the repayment capacity of the borrower on the same lines of mortgage loans Necessary columns incorporated in the application form
Documents to be submitted
  1. Application form specially designed for Gold (Term) Loan
  2. Income proof
  3. Purpose proof or declaration
  4. Declaration from the borrower agreeing to pay EMIs and also agreeing for banks right to auction the ornaments if 3 EMIs fall in to arrears and also to bring in the margin, if the value of Gold comes down.
  5. If loan is for business purpose, photo of the unit and the documentary proof of business.
  6. Application cum appraisal report
  7. Demand promissory Note
  8. Repayment Agreement
  9. Declaration
Stamp Duty

Rs.1/- for pronote

Rs.100 for Agreement
Appraisal of ornaments

Up to Rs.20.00 lakhs-Branch Appraiser should appraise

For Loans Above Rs.20.00 lakhs-Two appraisers should appraise the ornaments
Sanctioning Authority

Up to and Incusive of Rs.10.00 lakhs (Stand alone or Aggregate) : Branch Manager

Above 1.00 lakhs up to Rs.20.00 lakhs: Branch Manager and Zone Manager jointly.

Incase of absence of ZM, matter to be referred to HO for signature of an officer in HO.

Loans exceeding Rs 20.00 lakhs (Stand along aggregate) : Board
Credit Monitoring Branches have to monitor the loans for promt recovery of installments every month
IRAC Norms Account will slip to NPA if installments fall into arrears for more than 90 days
Eligibility The loan scheme is designed especially for small business people. The concern should be in the same business activity at least for a minimum period of one year and the business activity should be in the operational area of the branch. The stake holders should be the permanent residents of the area.
Primary Security Hypothecation of stock & book debts etc.
Collateral Security No collateral is required up to 2 laks. Beyond 2.00 lakhs, additional security in the form of Mortgage of immovable property is required to submit.
Amount of Loan Minimum One lakh-Maximum Rs. Five lakhs. (Loan can be availed in multiples of Rs.50000 between One lakh to Five lakhs.)
Margin Finance up to a maximum of 20-25% of past/expected annual sales of the business unit.
Tenure of Loan The tenure is from 90 days to maximum 360 days.
Contribution to Share Capital and others 2.5% of the loan amount of which, 1% as share capital subject to a maximum of Rs.1.50 lakhs & 1.5% as Term deposit .
Processing charges 1 % on loan amount + GST
Other charges 2% of the share capital amount has to be contributed towards the Members Welfare Fund and Rs.25/- towards admission fees.
Required documents

KYC Documents in respect of the business concern and also the promoters/proprietor/partners etc.If the loan for acquisation of Fixed Assets in the form of tools/machinery/furniture fixtures etc, borrower/s need to produce quotation/proforma invoice at the time of submitting application and on disbursement of the loan, the related bills to be produced

In case the loan is intended towards payment of trade creditors, they need to submit the proof of existence of debt
Eligibility The proponent should be an Indian National, preferably residing in the area of operation of the branch, where he intends to avail the facility. The loan scheme is for financing housing sector for construction as well as purchase of residential houses/ flats.
Primary Security The applicant should be a major; intent to purchase/ construct a house/flat which has a market value is eligible to avail this facility. The property should have been obtained by the vendor through purchase / valid gift. There should be no encumbrances over the property. The title of the property should be clear and marketable as per the opinion of the Bank. The applicant should be in a position to submit other relevant documents in connection with the property, link documents, encumbrance certificate, rent receipts, etc., The surplus income of the proponent supported by documentary evidence, should be sufficient to repay the equated monthly installments. The Bank should satisfy with the calculation of surplus income and has sole discretion to decide the surplus.
Collateral Security Third party guarantee, if thought necessary by the bank is to be furnished. The bank should satisfy with the credentials of the guarantor.
Amount of Loan Amount of loan depends on the cost of construction of the House/value of the property proposed for purchase.
Margin Finance up to a maximum of 60-70% of the market value of the property as estimated by the bank.
Tenure of Loan The tenure is from 12 months to 240 months (including moratorium/holiday period) depending upon the income of the proponent and cost of the project.
Contribution to Share Capital and others 2.5% of the loan amount of which 1% as share capital subject to a maximum of Rs.1.50 lakhs &1.5% as Term deposit
Processing charges 1 % on loan amount + GST
Other charges

Charges as applicable under stamp act and as prescribed by government of Andhra Pradesh from time to time for noting the mortgage.

2% of the share capital amount has to be contributed towards the Members Welfare Fund and Rs.25/- towards admission fees.
Required documents Original Title deeds, link documents for thirty years (Earlier documents to the title deeds to establish the transfer of rights), Latest Rent receipts in original, KYC DOCUMENTS of Applicant along with sureties/guarantors , PAN card if available, Photographs of self and joint holders of the property, Municipal plan, Income tax returns for the last three years in case of an assessee, income proof (salary certificate latest), three years balance sheet and profit and loss account in case of business persons.
Eligibility The proponent should be an Indian National, preferably residing in the area of operation of the branch, where he intends to avail the facility.
Primary Security Gold deposited by the proponent for pledge, should be only in the form of ornaments. Other forms of gold like Gold Bars, gold biscuits, gold coins shall not be accepted by the Bank. Name of the persons if inscribed on the gold ornaments, should be the applicants of loan against pledge of such ornaments or a no objection letter is to be submitted from the concerned person along with his proof of identity.
Collateral Security No collateral security is required.
Amount of Loan Amount of loan depends on the quantity and quality of gold subjected to a maximum of total limit of Rs 10.00 lacs per individual.
Margin The margin varies as per the guidelines of RBI from time to time and the current margin is 25% of the appraised value of the gold.
Tenure of Loan 12 months & renewable on review
Contribution to Share Capital Should be an ’A’ class share holder of the Bank
Processing charges Nil
Other charges 0.01% of value of gold towards insurance of the pledged ornaments.
Required documents Two photographs & KYC documents if the Applicant is not the savings account holder of the Bank& ornaments proposed for pledge.
Eligibility The proponent should be the depositor of the Bank
Primary Security Pledge of the duly discharged term deposit receipt by all the joint holders of the deposit.
Collateral Security Nil
Amount of Loan 85% of the face value of the deposit or 75% of principal+ to the date of sanction of loan, whichever is higher. There is no maximum limit.
Margin 15% value of deposit
Rate of Interest 1% over the interest payable on deposit
Tenure of Loan Remaining period of maturity of deposit
Contribution to Share Capital Nil
Processing charges Nil
Other charges Nil
Required documents Duly discharged deposit certificate and stamped with Rs.100/- deed of continuing guarantee form duly signed by the depositor & KYC documents of depositor if not submitted earlier while making deposit
Eligibility The proponent should be an Indian National, preferably residing in the area of operation of the branch, where he intends to avail the facility.
Primary Security Gold deposited by the proponent for pledge, should be only in the form of ornaments. Other forms of gold like Gold Bars, gold biscuits, gold coins shall not be accepted by the Bank. Name of the persons if inscribed on the gold ornaments, should be that of the applicants or a no objection letter is to be submitted from the concerned person along with his proof of identity.
Collateral Security No collateral security is required.
Amount of Loan Amount of loan depends on the quantity and quality of gold subjected to a maximum of total limit of Rs20.00 lacs per individual.
Margin The margin varies as per the guidelines of RBI from time to time and the current margin is 25% of the appraised value of the gold.
Tenure of Loan 6 months / 12 months
Contribution to Share Capital Gold loan borrowers are not required to maintain any share capital with the bank
Processing charges Nil
Other charges 6 months / 12 months-0.1% of value of gold towards insurance of the pledged ornaments.
Required documents Two photographs & KYC documents if the Applicant is not the savings account holder of the Bank& ornaments proposed for pledge.
Eligibility The proponent should be the depositor of the Bank.
Primary Security Pledge of the duly discharged term deposit receipt by all the joint holders of the deposit.
Collateral Security No collateral security is required
Amount of Loan 85% of the face value of the deposit or 75% of principal + interest to the date of sanction of loan, whichever is higher. There is no maximum limit.
Margin 15% of the deposit value
Rate of Interest Loan against Bank Term Deposits: 1% over the interest payable on term deposit
Tenure of Loan Remaining period of maturity of deposit.
Contribution to Share Capital Nil
Processing charges Nil
Other charges Nil
Required documents Duly discharged deposit certificate & KYC documents of depositor if not submitted earlier while making deposit