Pmfme Loan Policy

Ref: LOAN POLICY/LT L&A/2022-23 Date:31.10.
2022
LOAN POLICY CIRCULAR

PMFME LOAN POLICY
Sub: LT L&A – NFS – Sanction of Business Loans for under PMFME
Scheme Communication of guidelines – reg
Ref: Proceedings of the Loan Policy Committee Meeting dt :10.10.2022
*****
With reference to the subject cited , the Board Meeting of the Bank in its
meeting held on 11.10.2022 has resolved to approve the following guidelines
for the sanction of Business loans under the PMFME (PM FORMALIZATION OF
MICRO FOOD PROCESSING ENTERPRISES) Scheme.
OBJECTIVE:
To provide the financial assistance to the Business traders, Petty Business

traders, SHG Group members and self-employed individuals who are
recommended through the PMFME Portal to carry out their business activity in
the form of Term Loans and Working capital.
The eligible food processing business activities are noted here under:-
Bakery Products Cereals & Pulses Based Products

Citrus Based Products Coconut and coconut based products
Fruit Based Products Ground Nut Based Products
Milk and Milk Based Products Mushroom and Mushroom Based products
Oil Seeds products Rice and Rice Based products
Ready to Eat and Ready to cook
Soya bean products Sugar cane based
Vegetable based products
Any other activity as identified by the PMFME agency /selected by the

applicant/suitable to the area whichever is considered feasible.
ELIGIBILITY CRITERIA:
1. Applicant should be a permanent resident of the Banks area of
operation.
2. He should have crossed 18 Years.
3. He should have B Class membership in the Bank.
4. The applicant should have Savings / Current A/C with the Bank.
5. The applicant should have immovable property i.e House with RCC roof
/ Agriculture land/Open Plot.
6. If House is offered as a collateral security, the proposed building
should not older than 15 years and should be located in URBAN,GHMC,
DTCP,Municipal and Mandal H.Q Only with minimum area of 100 Sq
Yards.
7. If Plot is offered as a collateral security, the proposed Plot/House
should be at least 100 sq yards located in URBAN,GHMC, DTCP,
Municipal and Mandal H.Q Only.
8. If agriculture land is offered as a collateral security, the minimum
extent of land to be mortgaged should be to an extent of loan
eligibility.
9. The property should be free from the encumbrances.
10. The Property tax/Income tax should have been paid up to date.
11. For the business purpose , the applicant should have valid license to
carry out the business and GST registration if applicable.
ENROLLMENT OF THE APPLICANT IN THE PMFME PORTAL
1. The BM may advise the eligible borrower to apply in PMFME Portal for
sanction of subsidy in the name of the Bank.
2. The applicant must refer the site and obtain all the required
documents and upload in the site.
3. The applicant must select the Branch IFSC Code as financing Bank,
after selecting the code the details will be as stated under:-
Name of the Bank: Telangana State Cooperative Apex Bank Ltd.
Branch: DCCB MEDAK _______________ (Name of the Branch)
4. After uploading all the documents scrutiny will be conducted by the
KVIC/KVIB/DIC/Respective Organizations.
5. The eligible applications will be perused to the concerned Branches.
6. The applications will be then verified and issued consent as per the
Bank’s Policy.
DOCUMENTS TO BE PRODUCED FOR SANCTION OF LOAN:
1. The applicant should produce copies of any two documents such as

PAN card/Aadhar card and Driving License /Voter ID card.
2. The applicant should produce copies of any two documents such as
Adhaar card/Electricity Bill/Telephonic Bill as the residence proof.
3. Application form provided by the Bank.
4. Bank account statement for the last 6 months.
5. The copies of House Tax Receipts for the last 3 Years, if applicable.
6. The Income tax assessments for the last 3 Years, if applicable.
7. Approved Plan of the House Proposed for the Mortgage.
8. Records of the agriculture lands (15 Years Old Pahani, Latest pahani, IB)
9. Records of the Open Plots , HMDA, DTCP, Municipal Areas for the last 15 Years.
10. House Ownership certificate issued by the Municial commissioner /
Grama Panchayat.
11. The copies of House Tax Receipts for the last 3 years.
12. Approved plan of the House to be mortgaged.
13. Project report if applicable.
14. If agriculture lands are offered as a collateral security, the LT
procedure may be followed for sanction of loans, obtaining the LT
application form with the mortgage of immovable properties
application form.
S.No Parameter Details

1. Age Limit Age – 21 to 65 - For other activities
Age – 21 & above ( For Farm Activity)
2 ELIGIBILITY Farmers/Self-Employed/Others
3 MODE OF FINANCE ONLY DIRECT BRANCH.
(Min 80% recovery under PMFME Product every
month)
TARGET Rs 1.00 Crore Per financial Year for each

Branch.
4 DOCUMENTATION INDIVIDUALS
Maximum LOAN UP TO RS 2.00 LAKHS

3 members per As per Swayam Krushi Loan Policy for
SHG Group individuals.
Or
Subject to HO As per SHG Swayam Krushi Loan Policy for SHG
Permission Group members, the Concerned SHG Group
guarantee, the SHG Group must be regular in
savings and recovery
LOAN ABOVE RS 2.00 LAKHS
As per the LT Commercial Loan Policy / NFS
Loan Policy in addition to the terms as listed in
the Policy.
4 ROI ROI: 13.50%
PI:2% (In case of Overdue Loans)
CC:1% (In case of Overdue Loans)
5 REPAYMENT TENURE 5 Years – M/Q/HY – For Loan Above 2 Lakhs
As Per SHG SKL/SKL for Loan below 2 Lakhs
6 MINIMUM LAND The agriculture land of Minimum 1 acre

HOLDINGS
The Open Plot of Minimum 100 Sq Yards.
The agriculture land is
mandatory for the Dairy,,PLOT LOCATED IN :
Sheep/Goat, Poultry (DTCP/MUNICIPAL/MANDAL/GHMC/GRAM
Activity proposed under PANCHAYAT LAYOUT with registration
the PMFME. documents and NALA.
(Gram Panchayat plots without NALA or NO

layout are not accepted strictly)
7 APPLICANT SHARE IN It is recommended to have at least 40% of the
TOTAL Applicant property in the total property offered.
SECUIRTY OFFERED
However, in case if applicant could not offer
the security.
Then, the property offered can in the

name of applicant father, mother or
spouse.
The Branch Manager responsibility is to ensure

the clause of executants and co-executants.
8 VALAUTION OF A: 100% of SRA
PROPERTY B: 300% of SRA
C: (A+B)/2 – Final Valuation
9 PROCESSING CHARGES 1 % of Loan Amount up to a maximum of
Rs 10,000/-
10 SHARE AMOUNT 10 % of Loan Amount up to a maximum of
Rs 50,000/-
11 Down Payment Minimum 5% of Total Project Costs.
(As per the PMFME Master Guidelines)
12 Other Aspects The FIO reserves the right to sanction the loan
under PMFME as per the policy guidelines with
Clear recommendation, proper appraisal,
identification of the loan proposal adhering the
PMFME Bank Policy and KVIC guideliens.
QUANTUM OF LOAN:
The Quantum of the loan shall be maximum of Rs 30.00 Lakhs.
WORKING CAPITAL:
In case of working capital the account should be renewed every year.
The Interest should be recovered on Quarterly Basis. In case of nonpayment

of the Interest, the Renewal should not be allowed.
COVERAGE OF INSURANCE:
The House/Proposed shall be insured on the name of the applicant and the
Policy should be assigned in favor of the Bank till the repayment of the
entire loan amount.
LOAN PROCESSING & DISBURSEMENT:
1. The Branch should maintain register for the admission and register for
admission and movement of the application.
2. The Branch Manager should collect 1% Processing Fee not exceeding
Rs 10000/- in addition to the legal fee and valuation fee(if any) and
also collect the share amount of 10 % of loan amount up to a
maximum of Rs 50,000/-.
3. The Branch Manager should obtain EC for the last 15 Years.
4. Valuation certificate by the Sub-Registrar.
5. The Branch Manager should verify and check the application and admit
the same. Acknowledgment should be issued. The Branch Manager
should conduct preliminary enquiry on KYC norms and documents
furnished.
6. The Branch Manager in person visits the residence of the applicant and
verified the bona-fide of the address proof and ID proof documents
and also verify the immovable properties offered as the security and
make note of the details.
7. The Branch Manager should refer the application with his
recommendations to the Asst. General Manager/ Dy General
Manager/General Manager for the field verification.
8. The Head Office should obtain the legal opinion from the Bank
approved legal advisor and place for sanction.
9. After sanction by the Managing Committee or the case may be , the
office shall issue the sanction order within two days.
10. The Branch Manager should give communication to the applicant to
Execute the documents next day after the receipt of the sanction order
from Head Office and obtain consent for the terms and conditions
along with the documentation within week days.
11. After completion of the documentation and the loan details may be
entered in to the Dharani Portal and after obtaining EC the Branch
Manager shall disburse the loan through account on the same day or
next day of documentation.
12. The Branch Manager should obtain the insurance copy before making
the disbursement of the loan.
13. The Branch Manager should inform to the Head Office about the
disbursement of the loan and documents obtained.
14. The Branch Manager should open the loan account on the name of the
borrower.
15. The Branch Manager must visit the site after grounding the loan and
then verify and submit the UC to the H.O
16. The Branch Manager should ensure the recovery of the loan
installments regularly.
In case of defaults, the Branch Manager should initiate legal action.
17. The entire process from the date of receipt of the application till the
disbursement of the loan should be completed within 10 days.
18. The Branch Manager should take the responsibility to keep the loan
account on the track and conduct the asset verification on Quarterly
basis and record in asset verification register.
DOCUMENTS TO BE OBTAINED BEFORE DISBURSEMENT:
1. Demand Promissory Note.

2. Letter of Continuity.
3. Insurance Policy
4. Hypothecation Deed.
5. Deed of Guarantee, wherever applicable.
6. Mortgage Bond
7. Acceptance letter of Terms & Conditions.
GL CODE TOP BE USED FOR CBS ENTRY: _______
The Branch Manager should ensure to obtain the insurance Policy and
confirmation of the Balance in the loan account every year.
The Branch Manager should conduct the loan account properly and ensure
for the prompt recovery of the Interest and Installments and to initiate legal
action in case of default.
Therefore all the Branch Managers are instructed to follow the above
guidelines scrupulously and bring the contents of the circular to the notice of
all the staff.
Sd/-
CHIEF EXECUTIVE OFFICER
DCCB MEDAK
To,
All the Branch Managers in the District.

The General Managers of the Bank.
The DY. General Managers of the Bank.
The Asst General Managers of the Bank.
COPY SUBMITTED TO:

The President of the Bank for favor of information.

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Ref: LOAN POLICY/LT L&A/2022-23 Date:31.10.

LOAN POLICY CIRCULAR

Ref: Proceedings of the Loan Policy Committee Meeting dt :10.10.2022

To provide the financial assistance to the Business traders, Petty Business

Bakery Products Cereals & Pulses Based Products

Any other activity as identified by the PMFME agency /selected by the

ENROLLMENT OF THE APPLICANT IN THE PMFME PORTAL

1. The applicant should produce copies of any two documents such as

S.No Parameter Details

TARGET Rs 1.00 Crore Per financial Year for each

Maximum LOAN UP TO RS 2.00 LAKHS

As Per SHG SKL/SKL for Loan below 2 Lakhs

6 MINIMUM LAND The agriculture land of Minimum 1 acre

(Gram Panchayat plots without NALA or NO

Then, the property offered can in the

The Branch Manager responsibility is to ensure

The Quantum of the loan shall be maximum of Rs 30.00 Lakhs.

In case of working capital the account should be renewed every year.

The Interest should be recovered on Quarterly Basis. In case of nonpayment

LOAN PROCESSING & DISBURSEMENT:

DOCUMENTS TO BE OBTAINED BEFORE DISBURSEMENT:

1. Demand Promissory Note.

GL CODE TOP BE USED FOR CBS ENTRY: _______

CHIEF EXECUTIVE OFFICER

All the Branch Managers in the District.

COPY SUBMITTED TO:

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