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Credit Policy & Monitoring Division

RFC

 

HIGHLIGHTS:

             Financial assistance upto Rs. 20.00 crore.

              Joint projects with other FIs, Commercial Banks and RIICO

LIMIT OF LOAN :

-

Proprietor and Partnership units/Trusts

Upto Rs.800.00 lacs

-

Companies & Co-operative Societies having networth not exceeding Rs.30.00 crores

Upto Rs. 2000.00 Lacs.

DELEGATION OF POWERS FOR SANCTION OF LOAN:

Prevailing delegation of powers for sanction of term loan is as under:

Head Office level:

S.No.

Sanctioning Authority (irrespective of loan schemes)

Amount of loan (Rs. In lacs)

1

Executive Committee

Full powers for loans upto Rs.2000.00 lacs (including Joint Finance Cases)

2

Project Clearance & Consultative Committee (PC&CC) headed by MD.

Upto Rs.1000.00 lacs.

3

Project Clearance & Consultative Committee (PC&CC) headed by ED.

Upto Rs.500.00 lacs.

4

Project Clearance & Consultative Committee (PC&CC) headed by GM(Operation).

Upto Rs.300.00 lacs.

Field level:

 

 S.No.

Sanctioning Authority (irrespective of loan schemes)

Amount of loan (Rs. In lacs)

1

District Loan Advisory Committee (DLAC ) headed by DGM(Operation).

Upto Rs.150.00 lacs.

2

District Loan Advisory Committee (DLAC ) headed by Manager(Br.).

Upto Rs.100.00 lacs.

3

District Loan Advisory Committee (DLAC ) headed by DM(Br.).

Upto Rs.50.00 lacs.

Note: 

1.

The PC&CC is authorized to make need based relaxations in the terms and conditions in all sanctioned cases under various schemes of the Corporation.

 

2.

 

Cost Over run upto 20% of the sanctioned amount of loan would be sanctioned (without changing the level of margin on security and promoter’s contribution) by the respective sanctioning authority over & above the powers delegated for sanction of loan.

3.

Loan for purchase of DG set (upto 250 KVA) under DG set scheme shall be sanctioned by the concerned authority (Committee) within whose jurisdiction total outstanding falls after considering of the said loan.

4.

While sanctioning of loan at field level it should be ensured by the sanctioned authority that if the loan amount is more than the MRV of existing and proposed land & building, additional collateral security is invariably obtained as per prevailing guidelines.

5.

Loan cases of industrial units  proposed to be set up on converted land in isolated areas, shall be considered as per PG Circular  No. 1405 dated 19.12.2011 and 1409 dated 24.01.2012 with the prior approval from HO.

6.

The other norms of the respective scheme (including ceiling on loan amount) shall remain unchanged.

7.

Field Offices are not required to obtain prior permission from HO for SME sector cases upto Rs. 15.00 lacs under Scheme for Financing Against Assets. However, residential properties will not be considered for mortgaging under the Scheme for Finance Against Assets for SME Sector. Other provisions of the scheme will be unchanged.

8.

Further loan cases may be sanctioned by the sanctioning committee under whose jurisdiction total accommodation fall i.e. outstanding against the existing loan plus proposed loan.

9.

The above limits of sanction would also be applicable to Good Borrower Schemes in addition to the powers for sanction of loan under General Loan Schemes.

VALIDITY OF SANCTION:

To ensure speedy implementation of sanctioned projects, to control the effective commitment and to increase disbursement substantially, the validity of sanction has been kept for three months from the date of communication of sanctioned loan. Thereafter, the sanction will lapse automatically.  However, this sanction may be considered for revalidation on merits by the competent authority. The validity in respective schemes shall be continued as per provision of said scheme.