LOANS AND RECOVERY POLICY

The current Policy on Loans and Recovery has undergone a comprehensive review by the Loan Sub-Committee, with due consideration given to the guidelines and circulars periodically issued by the Reserve Bank of India. It has received approval from the Board of Management/Board of Directors during their meeting on August 25, 2023, as per Resolution No. A.1 (c) (ii), outlined as follows:

The Bank’s policy is to extend financial support exclusively to its own members, primarily focusing on areas such as trade, commerce, industry, housing construction and renovation, purchase of durable consumer goods, and other consumption-related or ceremonial purposes. This initiative aims to meet the credit requirements of various segments, including small artisans, self-employed individuals (such as medical practitioners, chartered accountants, engineers, etc.), small-scale traders, Micro, Small & Medium Enterprises (MSMEs), transport operators, and other economically disadvantaged sections of society.

In the process of granting loans, the Bank must ensure adherence to standard safeguards, including a thorough assessment of the borrower’s sources of income and their adequacy for regular repayments, evaluation of the nature of the offered collateral, and scrutiny of the borrower’s creditworthiness. Additionally, the Bank should satisfy itself regarding the economic viability and technical feasibility of the proposed projects to be financed. Furthermore, the Bank has the option to extend loans against its own Fixed Deposits, NSC/KVP/LIC Policies to non-members as well.